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CGT Exemption Loss Reliefs
Provided that EIS Income Tax Relief has been claimed Where a loss is incurred by a Shareholder on the
and not withdrawn on the EIS Qualifying Shares, no disposal of EIS Qualifying Shares on which EIS Relief
CGT is due on gains arising on disposal of the shares has been claimed, the loss, calculated after deducting
provided that they have been held throughout the EIS any Income Tax Relief previously claimed in respect of
Qualifying Period. the investment, may be set against the Shareholder’s
taxable income of the tax year of disposal or the
CGT Deferral
previous tax year. Alternatively, the loss may be offset
All or part of any chargeable gain arising on the against capital gains in the tax year of disposal. Any
disposal of an asset may be deferred by making a excess losses may be carried forward for relief against
claim for relief on an investment in EIS Qualifying future capital gains.
Shares. The gains which may be deferred are those
that have arisen in the three years before the EIS
Qualifying Shares are issued and those which arise up
to one year after that date. CGT Deferral relief is also
available on a disposal of assets in certain kinds of
trust, where the trustees themselves subscribe for EIS
Qualifying Shares.
The deferred gain will become chargeable if the EIS
shares are disposed of but if the shares are held until
death the deferred gain is never chargeable so the
deferral is indefinite.

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