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EIS tax relief clawback

How is it reported?

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I can't seem to find a definitive answer on this - some of my clients EIS shares were sold last summer, less than 3 years after they were purchased, so he owes HMRC £250-odd back in clawed back income tax relief - how does he pay this?  Does it just go on his tax return or does he pay it sooner?  

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By richard thomas
27th Feb 2021 12:36

1. The investor notifies HMRC under s 240 ITA 2007 that an event triggering withdrawal has occurred within 60 days of the event occurring.

2. HMRC makes an assessment under s 235. This has nothing to do with reporting in the tax return or the tax calculation - see s 32 ITA 2007.

3. Failure to file the return within 60 days can lead to a penalty under s 98 TMA: see column 2 in the Table.

The manual reference is VCM14190.

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By Eightisthemagicno
01st Mar 2021 11:49

Thanks both, very helpful. The annoying thing is that when I searched the forum for 'eis clawback' I got zero results!

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Replying to Eightisthemagicno:
By Wanderer
01st Mar 2021 12:01

Google:- eis clawback

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