bonobo64

Hi, Is someone able to answer this question please? Thanks.

Hi, In 2022-23 I have made more EIS-eligible investments than what's required to reduce my income tax liability to nil, therefore I cannot claim full EIS Income Tax relief for all off them. As I understand based on Venture Capital Schemes Manual VCM20060, if I claim a smaller amount of Income Tax relief for each investment, Full CGT Exemption will be available for each investment. Is this correct? As an example, let's say I've made EIS qualifying investments of £1000 each in 10 different companies (£10000 in total). Only £1000 worth of relief can be given before my Income Tax liability is reduced to nil (ITA07/S29(2)), so I elect to claim £100 in relief for each investment. Let's say each of the 10 investments will be sold at a profit after the Termination Date (so EIS relief is not withdrawn). Do I understand correctly that the restriction in TCGA92/S150A (3) does not apply, so the Full Capital Gain for each of the 10 investments will be CGT-exempt? Thank you.