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I retired in March 2013 - can I claim tax relief with an Enterprise

Customer Question

I retired in March 2013 - can I claim tax relief with an Enterprise Investment Scheme Certificate for shares 8 bought in August this year?
Submitted: 4 years ago.
Category: Tax
Expert:  bigduckontax replied 4 years ago.
Hello, I'm Keith and happy to help you with your question.

HMRC guidance [edited] on this matter is:

'Connection by employment

If you are a partner, director or an employee of the company, you are connected with it. You are also not eligible for relief if an associate is so connected. As with connection because of an interest in the company, this restriction applies not only at the time the shares were issued but to the two year period before the shares were issued and the three years after the issue (or the three years after the commencement of the trade if that followed the share issue).'

From this it would appear that you are entitled to tax relief for your share purchase.
Customer: replied 4 years ago.

Many thanks - should I send the certificate I have received to HM Revenue

Expert:  bigduckontax replied 4 years ago.
As`far as I am aware there is no requirement to send the certificate to HMRC at this stage. It may well be needed though when you complete your annual self assessment return form. They will be quick to call for it if they do require documentary evidence.
Expert:  bigduckontax replied 4 years ago.
On reflection I think it appropriate to amplify my answer. HMRC guidance is:

'How do I claim my tax relief?

You cannot claim tax relief until the company has sent in an application form, a SEIS3s. You can make a claim on your Self Assessment tax return for the tax year in which the shares were issued. If you have an SEIS3 for a year for which you have not yet received a tax return, you can request a change to your PAYE tax code, or an adjustment to any Self Assessment payment on account due. You will still have to make the claim itself on your tax return when you get it.

If the shares were issued in a year for which it is too late to make or amend a Self Assessment, or if the claim is for capital gains re-investment relief, you must also complete the claim part of the claim form and send it to your tax office.

You can claim relief up to five years after the 31 January following the tax years in which the investment was made.

Please note: this is a longer period than for most reliefs, to take account of the fact that it is partially dependent on what the company does.'

As you can see there are some instances in which your`tax office does need a claim form.