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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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If I sell an EIS investment (held for over 3 years) at a

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If I sell an EIS investment (held for over 3 years) at a loss, can I claim relief against income tax or will it be a capital loss ? The company is performing poorly but is not being liquidated.
JA: What are the assets or property for this capital loss?
Customer: EIS shares in a manufacturing company
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

EIS investment carries a high risk so instead of capital loss relief a loss on an EIS investment can be used to offset income tax. You will appreciate that if you are a higher rate tax payer this would be beneficial.

Customer: replied 16 days ago.
Thank you for a quick response. I just need to clarify that the company isn't being closed so the shares still have a value. Can i still offset against income tax ? I always thought EIS investments had to close down in order to claim the tax relief against income.

No, you can sell them too.

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