My client deferred a gain into an EIS investment over 5 years ago. Upon sale of the shares I understand that any gain will be exempt, to include the deferred gain and the gain in the EIS shares. Is this correct?
Client is now emmigrating from the UK for good. Will this have any adverse consequences as far as his overall CGT exemption on the shares is concerned.
Many thanks to all.
Colin
Related resources
Replies (1)
Please login or register to join the discussion.
EIS shares and non resident
I think you are probably OK but it may depend on the exact dates. Have a look at the guidance in VCM 38200 and 38210 amongst other bits of that manual. It appears that only if you become non-resident within 3 (formerly 5) years that a charge can apply.
Might be worth making it clear to client that if he changes his mind about emigrating ( it does happen ) and returns - broadly - within 5 years he may be liable to CGT on any gains he has made on any UK assets.