I have a client who has a large portfolio of EIS investments of which I have claimed tax relief and CGT deferral relief in previous tax years. One of the holdings has now been liquidated. The shares have only been owned for just over 1 year.
Am I correct in thinking that because this is a liquidation the tax relief is still intact and the loss relief of 70% of the value can be claimed in the year the company was liquidated.
Secondly will the capital gains deferral mean that a capital gain is created equal to the amount initially deferred and this will be a capital gain in the same year of the liquidation?
Thanks in advance for your help.