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Where Taxpayers and Advisers Meet

Taxation of EIS and non EIS shares in same company

bob010109
Posts:1
Joined:Thu Oct 15, 2009 6:12 pm
Taxation of EIS and non EIS shares in same company

Postby bob010109 » Thu Mar 15, 2018 3:44 pm

I subscribed to 100 shares in 'XYZ', an EIS company 10 years ago which has subsequently become traded on AIM. My relative (not my spouse) also subscribed for 100 shares in the same company under the EIS scheme.

The relative is now dead and I have inherited 100 shares which are not subject to EIS rules anymore. I therefore now hold 100 shares on which there is no CGT if sold as it is held by myself under the EIS scheme, and 100 which is treated as normal shares which are subject to CGT, my acquisition cost being that on date of death. The 100 EIS shares carry a substantial gain, the 100 inherited shares do not and may carry a small loss.

If I sell 50 shares now, how is this taxed?

(a) can I elect to continue to hold my 100 EIS shares and sell 50 of the inherited shares?
(b) am I forced to amalgamate the shares and sell 25 of the EIS shares and 25 of the non EIS shares?
(c) am I forced to choose FIFO?

Many thanks

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