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Tax relief on Enterprise Investment Scheme subscriptions

Tax relief on Enterprise Investment Scheme...

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Without asking my advice a client subscribed for shares within the Enterprise Investment Scheme to the tune of £6,000. Under normal circumstances this would yield £1,800 in tax relief but in the year in question(2014-15) the client's taxable income was below £10,000. Income for 2013-14 was also below tax threshold but he had a small Capital Gain which cost £410.40 in CGT.

Is there any way this client can obtain the full amount of the theoretical relief?

Jivebunny

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paddle steamer
By DJKL
08th Feb 2016 17:50

Can he move it back a year?

https://www.gov.uk/government/publications/enterprise-investment-scheme-...

The general rule is that the relief is available for the tax year in which the shares are issued. But if you choose, you can treat some or all of the shares as issued in the previous year and claim relief in that previous year, subject to the maximum £1 million relief limit for the year. You will find the date of issue of your shares recorded on form EIS3 or EIS5.

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By Sherman Holter
08th Feb 2016 20:00

But

 

Take care with claiming relief in prior year as the guidance includes this:-

you will only be able to claim relief in the year before the year in which the fund closed

 

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Replying to Sherman Holter:
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By Donna-
26th Jan 2018 22:45

Hi, that's interesting.. Please help shed some light if I am affected by that - https://www.accountingweb.co.uk/any-answers/eis-tax-relief-0

I'm scratching my head here..
Thanking you.

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