TOPIC:

We have just received a preliminary confirmation of EIS approval for the share offer. This means HMRC believe we meet the conditions for individuals to claim 30% tax relief on their investment, subject to their own personal affairs meeting the HMRC regulations. The document is available in the document downloads section - shares folder.

Please note, this advanced approval is ALL HMRC ever provide... the company then re-makes its application after at least 4 months trading. Then, providing that the trading activity and other parameters are as originally stated, approval is confirmed. This will be fine with us. However, just as with any similar venture, we urge anyone with doubts to consult their own tax experts. Your own tax affairs ALSO have to be eligible.

I've just read on the HMRC site that ...

"Claims to relief can be made up to five years after the first 31 January following the tax year in which the investment was made."

So I assume I can claim the tax relief any tax year from 2013-2014 up to and including 2018-2019. That's useful to me. Can someone confirm I've got that right ?

Hi Arggghh (have I spelt that right?!)

Thanks for the question. Yes,that is indeed what the HMRC site says, but I will run it past our accountant to be sure... or you could do the same with your own advisor.

Will get back when I have an answer from him

Patrick

Ok... following up on above query, our accountant says:


"I can confirm that the position as quoted is correct. Under S2020 ITA 2007 an individual has 5 years from the normal self-assessment filing deadline to make a claim to EIS relief. Therefore, an investment in the 2013-14 tax year has a filing deadline of 31 January 2015 – the five year claim deadline is then 31 January 2020."

Hope that helps!
Patrick

Still a bit confused on EIS - sorry!

The individual has 5 years in which to claim, but can only claim for tax relief offset against the year for which the investment is made.
So in this case, the claim can only be made against tax paid 2012/13.

From www.hmrc.gov.uk/eis/part1/1-2.htm
"Relief is at 30 per cent of the cost of the shares, to be set against the individual's Income Tax liability for the tax year in which the investment was made."

The Bell investment will count as 2012/13 tax year - won't it?
I am assuming the key date is 20th March 2013, or will it be within the new tax year.