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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17188
Experience:  International tax
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I invested in an EIS company in June last year with a view

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I invested in an EIS company in June last year with a view to capitalising on the tax advantages. I now have made a poor investment and have lost all profit. If I sell my EIS shares to someone else, can they profit from the EIS scheme on the same basis that I would have or do they have to buy the shares from the company directly when initially offered?
Hello and thank you for allowing me to assist you.
Not exactly.
Tax relief will be reduced or withdrawn if,:
any of the shares are disposed of (unless the disposal is to a spouse or civil partner - in those circumstances the shares are treated as if the spouse or civil partner had subscribed for them)
you (or an associate) ‘receive value’ from the company (or a person connected with that company)
So if you dispose of the shares the new owner does not receive your same relief.
You would be required to inform your tax office within 60 days if you did dispose of the shares.
HMRC would reduce the relief and the calculation for that can be found under VCM15015.
Generally you must hold the shares for 3 years.
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