I have a client that made a large capital gain in 2015/16 (tax of ~£100k), which is due for payment on 31 January 2017.
We have discussed reinvesting the gain in EIS investments to roll the gain over (the EIS and IHT benefits make up for the risk), however, it is likely that the EIS investments themselves (and EIS3) will not be available until March/April.
The question is whether the client needs to pay the CGT and then reclaim it, or can they hold off of paying the tax. We appreciate that the interest will be charged, then reduced to nil if no tax is due. Does the same apply to the 5% surcharge if the tax is outstanding on 28 Feb?
Any help would be appreciated.