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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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How to claim EIS tax relief

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how to claim EIS tax relief
Can you expand on your question please.
Customer: replied 2 years 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
Were the shares new shares acquired through the Enterprise Investment Scheme? Did you get income tax relief on the investment at 30%?
Customer: replied 2 years 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 2 years ago.
I have not had any tax relief on these shares
Thanks. Leave this with me while I draft my answer.
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 2 years ago.
ok thanks for clarifying the situation , hmrc web site is as clear as mud.
Thanks. Would you mind rating my answer before you leave the site please.
Customer: replied 2 years ago.
have done
I cannot see the notification in the dialogue.
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