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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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How to claim EIS tax relief

Resolved Question:

how to claim EIS tax relief
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Can you expand on your question please.
Customer: replied 1 year ago.
I have invested in a company listed on the AIM market which has fallen in value to a point where the value is near 0, I have acquired these share over a number of years. it is my understanding that I could possibly claim EIS (30%) tax relief on the loss
Expert:  TonyTax replied 1 year ago.
Were the shares new shares acquired through the Enterprise Investment Scheme? Did you get income tax relief on the investment at 30%?
Customer: replied 1 year ago.
the shares were acquired through a broker (x-o) which are traded on the aim market. I was not aware of the EIS scheme until recently so unsure if these shares qualify
Customer: replied 1 year ago.
I have not had any tax relief on these shares
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
You can only claim EIS income tax relief at 30% for newly issued shares (not existing shares) for the tax year in which the shares were issued or the previous tax year. If you were not issued with an EIS3 for each investment, then they would not have been newly issued shares. The same criteria applies to claiming income tax relief for the capital loss if the shares are worthless. They have to be shares that were subscribed for as opposed to just bought on AIM. See page 5 here. The rules for a negligible value claim are here. If income tax relief isn't available, you will still have a capital loss which can be offset against capital gains. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
ok thanks for clarifying the situation , hmrc web site is as clear as mud.
Expert:  TonyTax replied 1 year ago.
Thanks. Would you mind rating my answer before you leave the site please.
Customer: replied 1 year ago.
have done
Expert:  TonyTax replied 1 year ago.
I cannot see the notification in the dialogue.
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