HMRC are reviewing claims made taxpayers for EIS deferral relief and are reminding them of the events which cause the deferred gains to come back into charge. These letters initially cover deferral claims made as far back as 2012/13 and 2013/14.

Capital Gains Tax can be deferred if capital proceeds are invested in EIS shares.

The gain can be realised from any asset but the EIS qualifying share investment must take place in the period of one year before or three years after the disposal of the asset.

HMRC’s letters remind taxpayers that these deferred gains become chargeable where:

  • The EIS shares are disposed of.
  • The taxpayer ceases to be resident in the UK before the termination date of the shares.
  • The shares cease to be eligible shares.

Useful guides on this topic

EIS: Enterprise Investment Scheme: At a glance (freeview)
When can EIS relief be claimed?  What are the conditions for EIS relief?  What are the benefits of EIS relief?

EIS: Enterprise Investment Scheme (subscriber guide)
When can EIS relief be claimed?  What are the conditions for EIS relief?  What are the benefits of EIS relief?

SEIS & EIS
Guides to all aspects of SEIS and EIS relief

External Links

EIS Deferral Relief – Customer Letter

EIS Deferral Relief – Agents Letter


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