EIS relief requires an income tax liability to offset, otherwise the benefits of such an investment are minimised.
But does HMRC care where a liability comes from?
I have made various EIS investments this year - a year in which my income tax liability will be low. Currently I have 20% more EIS relief to claim than taxable income.
I also have an self managed investment portfolio (brokerage account) which generates monthly dividends. In order to maximise EIS relief, can the investment portfolio essentially time the ex-dividend date of a fund or stock to create 'income'? Of course, the portfolio value itself will be lowered by the dividend amount creating a net zero position there, but might this be advantageous so by April 22, more 'income' has been realised than otherwise would have been?
In theory, one could create 'daily dividends' running down the fund to create taxable income. Ordinarily such a dividend capture strategy would be pointless, but the addition of EIS makes me ask the question.