A client invested into an EIS company a few years ago, deferring a capital gain at the time.
The EIS company has now failed due to commercial reasons and the loss (after the income tax relief originally claimed) will be set against income.
Does the deferred gain come back into charge, even though a loss was made on the EIS shares? I know it would if the EIS shares had been sold for a gain but cannot seem to find an answer when the EIS shares make a loss or it goes out of business.
Thanks for any contributions.