Any EIS experts out there?

Any EIS experts out there?

Didn't find your answer?

To qualify for a deferral I understand that the client has until Jan 2010 to buy equivalent amount of shares in EIS and he is going to do this gradually so that the deadline is met . The question is does he declare the gain in 2006/07 Tax Return and claims a deferral albeit that full amount is not as yet fully invested? what are the mechanics generally?
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By AnonymousUser
03rd Jun 2007 22:12

No such luck
The client will have to declare gain (and associated reliefs if any reinvestments are made by date return submitted), and then submit amended returns as and when further investments are made.

The key is that you do not have any entitlement to claim relief until you have the appropriate form EIS3, which can only be issued when the comapny has satisfied HMRC that a qualifying investment has been made and the trade carried on for an appropriate period.

There are no rules which would allow you to claim relief for a potential investment. There used to be such a provision for the old reinvestment relief on the grounds that you needed to reinvest the proceeds of the sale, and if you paid the tax you then did not have the proceeds available to make the reinvestment.

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