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Where Taxpayers and Advisers Meet

Optimising EIS Reliefs

adamh
Posts:34
Joined:Thu Aug 16, 2012 1:45 am
Optimising EIS Reliefs

Postby adamh » Tue Jan 29, 2019 10:05 pm

Hi,

In 2017/2018 I invested in 10 EIS of around £10k each to deal with a capital gain of around £110k. However, my income tax liability for 2016/2017 was only around £5k and likewise for 2017/2018.

How do you recommend I claim the EIS reliefs to optimise tax relief for now and the future? Should I make partial claims for income tax relief on all 10 EIS? Or full claims on some of them?

(I am aware that CGT relief in the future can be lost if the EIS income tax relief is not claimed.)

Thanks in advance.
Adam

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Optimising EIS Reliefs

Postby AdamS93 » Wed Jan 30, 2019 9:04 am

You can only claim income tax relief for the year of investment or the prior year.

What you should’ve done is invested over 3 years. EIS reinvestment relief can be carried back up to 3 years, unlike the income tax relief.


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