How and when to claim tax reliefs
There are certain time limits and considerations when claiming EIS tax reliefs.
How to claim | When available | Is there a limit to claim? | |
---|---|---|---|
Income tax relief | Amend PAYE tax code (if applicable) or through a personal tax return. EIS 3 or EIS 5 certificates required.* | Approved EIS portfolio investments: in the tax year that the fund closes. Unapproved EIS portfolio investments: in the tax year the investment into each underlying company is made. | Five years from 31 January, after the tax year in which the shares were issued. |
Capital gains tax relief | There is no need to do anything. | When the shares are sold, provided they have been held for at least three years. | There is no time limit. |
Loss relief | Through a personal tax return. | When either the shares are disposed of or when the shares are of nil value. | Income tax: one year from 31 January, after the tax year in which the loss was made. Capital gains tax: four years after the end of tax year in which the loss was made. |
Capital gains deferral relief | Through a personal tax return. EIS 3 certificates and EIS 5 certificates required.* | Approved EIS portfolio investments: in the tax year the investment into each underlying company is made. Unapproved EIS portfolio investments: in the tax year the investment into each underlying company is made. | Five years from 31 January after the tax year in which the shares were issued. |
Inheritance tax relief | Through an inheritance tax form valuing the deceased’s estate. | Upon death. | Before probate proceedings come to an end. |