Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 21 Apr 2022 15:29:41 GMT by Marc
I claimed around £150 of EIS tax relief in 2019 - 2020 for shares in a company that has now been sold less than 3 years after my investment (at a loss). My understanding is that I would now lose the loss relief as I have not held the shares for 3 years, but I understand that I can also claim loss relief through the capital gains section of the tax return. Now that I am working on my 2021 - 2022 tax return do I need to enter the £150 relief claimed anywhere to pay it back, or is everything handled by the EIS / loss sections of the capital gain part of the return?
Posted Mon, 25 Apr 2022 13:56:48 GMT by HMRC Admin 17

Hi,
 
The withdrawal of EIS Income Tax relief is dealt with by way of a special assessment and must be notified to HMRC in writing.

It should not be included in the tax return.

Please see VCM15130 - Venture Capital Schemes Manual - HMRC internal manual - GOV.UK (www.gov.uk) and VCM15015 - Venture Capital Schemes Manual - HMRC internal manual - GOV.UK (www.gov.uk).

The claim for share loss relief should be made in the tax return for the year of disposal on the Capital Gains section.

Thank you.

You must be signed in to post in this forum.