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Posted Wed, 25 Oct 2023 21:12:21 GMT by David
Hello, I have recently disposed of some EIS shares at a loss and would like to claim loss relief via self assessment. I disposed of the shares in the current tax year (23/24), but would like to claim the loss against last year's income (22/23). Can I submit this claim as part of my 22/23 tax return? Or do I need to wait until my 23/24 return is due and make the claim then? Thanks in advance! David
Posted Mon, 30 Oct 2023 14:53:15 GMT by HMRC Admin 10 Response
Hi
You need to wait until your are filing the 23/24 tax return as in year losses needed to be used against in year gains first.
Posted Sun, 26 Nov 2023 14:35:54 GMT by A D
HI Admin I am in the same situation where I would like to claim EIS loss relief for shares disposed of this tax year (2023/24) against last year's income (22/23) and have yet to submit my 22/23 tax return. Can i clarify something? You mention that in year losses need to be used against in year gains first, but seeing as we are permitted to clam the loss relief against last years income, it would mean by definition, that we don't actually need to use it against in year capital gains first? Would it be possible to definitely confirm then that we still can't submit the loss relief on our 2022/23 returns? thanks 

Name removed admin . 
Posted Tue, 28 Nov 2023 12:51:36 GMT by HMRC Admin 8 Response
Hi,
As the loss did not occur in the 22/23 tax year, you cannot claim it on the return. you can submit a separate claim for the losses for it to be done manually rather than wait until the 23/24 return is due.
You would need to submit this in writing to HMRC, PAYE & Self Assessment BX9 1AS.
Thank you.
Posted Tue, 28 Nov 2023 18:38:39 GMT by A D
Understood. Thank you.
Posted Fri, 08 Dec 2023 15:59:03 GMT by
Hi, I need to file 22/23 tax return, I just notice that I have a EIS loss (Purchased in 2016 and terminated in Sept 2019 held for three years) but have not made any loss claim yet. Can I claim EIS loss relief in my 22/23 tax return? many thanks
Posted Fri, 15 Dec 2023 12:13:25 GMT by HMRC Admin 20 Response
Hi littlebee1030,
You can only claim loss relief when you dispose of the shares or the company is insolvent. please see giudance at:-
 HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023)
Thank you.
Posted Wed, 10 Jan 2024 12:19:23 GMT by
Filling in my 2022/23 self assessment return. I incurred a complete loss in Oct 2021 on an EIS investment. How do I fill in SA108? So far I have boxes 33, 35, 43 and 44 set to the amount of the effective cost (i.e. purchase cost less 30% EIS tax relief) and box 36 set to NVC. However, these entries do not result in any tax refund in my calculation. What did I do wrong?
Posted Tue, 16 Jan 2024 13:02:50 GMT by HMRC Admin 19 Response
Hi,

It is possible that you have not paid tax, so no tax is refundable. We cannot tell what you have entered on your tax return. For a detailed answer to to your question, you would need to contact our Self Assesment team or seek professional advice.

Self Assessment tax return forms

Thank you.
Posted Wed, 24 Jan 2024 22:43:19 GMT by
1. Can I claim loss relief against income tax on EIS shares which went bust in April 2023 against the 21-22 tax year? 2. Or the 23-24 tax year? 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23?
Posted Fri, 26 Jan 2024 19:56:58 GMT by
Thanks HMRC Admin 19. I had paid enough tax to reclaim the loss. The solution was to enter the tax being reclaimed into box 15 "Decrease in tax due because of adjustments to an earlier year" on SA110 page TC2
Posted Mon, 29 Jan 2024 14:00:41 GMT by
Hi HMRC Admin 32, Thank you, that addresses the years/timing. Can you help with my Q3? 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23? Do I need to get a cash refund paid for the tax relief of 21-22 so that it is no longer in my account, and does not affect the following year 22-23? I successfully entered the EIS losses against income in an amendment to my 21-22 return. However when I tried some EIS losses against income in my 22-23 return, following the same procedure, I got an error which I could not resolve despite trying different things, many times. It seems the 22-23 return operates differently from the 21-22 amendment? The error (maybe because I have no gains, only losses, and disposal proceeds are zero?) is: You cannot complete 'Gains in the year, before losses' as you have not completed 'Number of disposals' and 'Disposal proceeds'. Please amend.
Posted Thu, 01 Feb 2024 09:30:02 GMT by HMRC Admin 2 Response
Hi,

EIS losses are declared in the unlisted shares and securities section of SA108 and the online capital gains section. In this section, you can elect to set the losses against other income in the tax year. If you claimed tax relief on the EIS shares and they were disposed of whithin 3 years of acquistion, the tax relief is not due and will need to be repaid. 

Enterprise Investment Scheme – Income Tax relief (Self Assessment helpsheet HS341)

Thank you.

 
Posted Thu, 01 Feb 2024 09:45:28 GMT by
Hi HMRC Admin 2, Thank you. I have followed all the procedures and helpsheets (SA108_Notes_2023.pdf, HS297 Capital Gains Tax and Enterprise Investment Scheme (2023) - GOV.UK.pdf, HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023) - GOV.UK.pdf) for EIS losses against income, and understand how it works in principle, but cannot find an answer to my Question 3: 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23? Do I need to get a cash refund paid for the tax relief of 21-22 so that it is no longer in my account, and does not affect the following year 22-23? Nor Question 4: 4. I successfully entered the EIS losses against income in an amendment to my 21-22 return. However when I tried some EIS losses against income in my 22-23 return, following the same procedure, I got an error which I could not resolve despite trying different things, many times. It seems the 22-23 return operates differently from the 21-22 amendment? The error (maybe because I have no gains, only losses, and disposal proceeds are zero?) is: "You cannot complete 'Gains in the year, before losses' as you have not completed 'Number of disposals' and 'Disposal proceeds'. Please amend."
Posted Fri, 02 Feb 2024 12:34:37 GMT by HMRC Admin 2 Response
Hi,

The loss claim refund for 21/22 will not affect the tax calculation for 22/23 if the loss is for a different company.  

You can amend the disposal proceeds to £1 and add a further £1 to the expenses.

Thank you.
Posted Tue, 03 Dec 2024 16:15:44 GMT by Petya
Hello, an EIS company, I invested into, went into administration and will be liquidated, I will make a negligent value claim and would like to use a share loss relief to offset the loss against my income. However when I subscribed for the shares I did not claim EIS income tax relief as I did not have liability to claim against. Would I still be qualified for the EIS share disposal relief please?
Posted Wed, 04 Dec 2024 18:04:23 GMT by maxb
According to https://www.gov.uk/government/publications/enterprise-investment-scheme-and-capital-gains-tax-hs297-self-assessment-helpsheet/hs297-capital-gains-tax-and-enterprise-investment-scheme-2024 if no Income Tax relief was claimed, Disposal relief is NOT available. However, Disposal relief applies to gains, not losses. Share loss relief, on the other hand, according to https://www.gov.uk/government/publications/negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-hs286-self-assessment-he/hs286-negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-2024 MAY be available even when EIS Income Tax relief was not claimed, although when not claimed, there is a complicated set of other conditions the company must meet, so it may be difficult to determine if this applies to your shares, and you might need professional assistance.
Posted Fri, 06 Dec 2024 16:12:25 GMT by HMRC Admin 19 Response
Hi petya,
As you did not claim tax relief on your EIS shares, there is no tax relief to withdraw. You can still claim for negligible value for the shares. If you complete a tax return, you would claim this in the unlisted shares and securities section and provide supporting evidence.  
If you do not need to complete a tax return, you would need to submit a claim in writing and provide supporting evidence.
Thank you.

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