SEIS carry Forward

SEIS carry Forward

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Just checking, I have a client with a SEIS investment, but losses and dividend income only for 2014/15 so no rebate.  Same in 2013/14.

I can see provisions to make a claim for upto 5 years, but presumably this is just a time limit to make the claim as opposed to the ability to carry the investment forward into 2015/16 or further?

Client swears blind you can but I don't think I am being thick here. For once. 

Replies (6)

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Portia profile image
By Portia Nina Levin
22nd Jan 2016 12:24

The investment is made when the investment is made. That is the tax year in which you get relief, but you can claim for it to be treated as if the investment was made in the previous year.

When I say "investment is made", I mean, of course, "shares are issued", which does not take place under the legislation until the company issues the relevant form SEIS3.

It may be that the client made the monetary investment in 2014/15, but if the form SEIS3 was not issued until 2015/16, then you would have a valid 2015/16 claim.

Thanks (2)
By ireallyshouldknowthisbut
22nd Jan 2016 13:27

.

Thanks, the SEIS3 is dated 2014/15. 

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Portia profile image
By Portia Nina Levin
22nd Jan 2016 14:20

Then claims can only be made in relation to 2014/15 or 2013/14 and you have 5 years from 5 January following the end of the tax year for which you are claiming.

Remember also that the CGT exemption does not apply unless there is income tax relief attributable to the shares.

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avatar
By kaff
22nd Jan 2016 20:27

I have to take issue with Portia
i may have misunderstood Portia's reply, but the SEIS legislation categorically does NOT regard the time of share issue as the the time at which the SEIS3 is issued. For SEIS purposes as for other tax purposes, shares are in most cases considered to be issued when the relevant entry is made in the company's register of members. There may be a distinction to be drawn between the time when the investor gives the company his money and the time at which the shares are considered to be issued: it is the latter which is relevant for determining, from the investor's perspective, the tax year in which the investment was made.

I think Portia may be confusing the provisions of s257DL ITA, which apply to restrict the amount of SEIS investment which a company may receive, with the provisions which apply to the investor. S257DL determines the amount of SEIS investment a company has had, by reference to the company having issued shares in respect of which it has submitted a compliance statement (ie form SEIS1 rather than form SEIS3) to HMRC.

Kathryn Robertson

I do have some

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Portia profile image
By Portia Nina Levin
23rd Jan 2016 12:08

No. Portia was, Portia thinks, misrecollecting a point in relation to section 257EB(1). Apologies.

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Replying to williams lester accountants:
Red Leader
By Red Leader
23rd Jan 2016 14:32

Thank God!

Portia Nina Levin wrote:
No. Portia was, Portia thinks, misrecollecting a point in relation to section 257EB(1). Apologies.

I was just getting ready to revise several TRs.

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