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Posted Thu, 03 Nov 2022 11:08:27 GMT by masterp
Hi, I made an EIS investment of £10500 in a company in 2016. I then claimed back the upfront 30% income tax relief of £3150 making the effective cost of investment £7350. In Jan 2022 the company was dissolved making the value of my shares nill. I did not sell any shares or make any capital gains. I am trying to claim loss relief against my income tax at my marginal rate of 40% on the £7350 which would be £2940 On the page "Other tax reliefs and deductions page (page 2 of 2)" box "Subscriptions for shares under the Enterprise Investment Scheme box" I have entered £7350. When I view my final tax calculation it is showing "minus Enterprise Investment Scheme Relief" amount of £2205 which is not the £2940 I was expecting. What is the issue here? Just to be clear i am trying to claim EIS loss relief on effective cost of investment £7350 at my marginal rate of 40% via the online tax return for 2021-22.
Posted Tue, 08 Nov 2022 14:11:37 GMT by HMRC Admin 32

You will need to write to HMRC claiming negligible value for the share or declare the neglible value in a Self Assessment tax return.

Thank you.
Posted Tue, 08 Nov 2022 15:29:24 GMT by masterp
Hi, how would I declare "The neglible value in a Self Assessment tax return". Can you tell me which pages/sections/boxes of the online Self Assessment tax return would need to be completed with which numbers based on the information i have provided. I am new to this so the more explicit the better. I am sure this will help other also in future. Thanks
Posted Fri, 11 Nov 2022 11:40:07 GMT by HMRC Admin 32

You will need to write to HMRC, providing evidence that shows your assets no longer have any value.  

If HMRC agree with you, you can realise a loss to reduce your capital gains.  

You can find further guidance here:

Negligible value claims and agreements

Thank you.

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