Can you carry forward EIS tax relief?

[traxx]

Wonder if anyone can help with this question?

I have a relative who is paying almost no tax for 2014/15, but did pay a lot in 2013/14 and probably will in future

If they want to invest in a project which is an EIS investment this tax year I'm presuming they can't just reclaim the 30%, but can they carry that forward in some way and offset it in 2015/16 or backdate it in some way?

[STattam]

If invested in the underlying qualifying asset or if the EIS has already been granted relief then investment prior to end of this tax year can be elected to offset against income tax in 13/14, but not carried forward to 15/16, would need to invest again in that year post April.

[gregf40]

Assuming the investment is completed in the 14-15 tax year you can just amend the 13-14 tax return and HMRC will send you 30% back straight away.

[Rich135]

Traxx, I hope you don't mind me asking a similar question on EIS to the resident experts!

I believe EIS relief is not available to a Connected Person of a company. If I were to buy equity in a company, and then go on to become a director, would I qualify for relief or not? Share would be kept for 3 years etc.

[STattam]

Which relief are you after, Business Property Relief or other EIS related reliefs such as income tax or CGT holdover?

[Rich135]

Hi, I was after EIS relief for offset against income tax and then CGT on sale of the business.

[STattam]

You would not get EIS reliefs, but holding may qualify for not dependent upon what the business does is if it is a qualifying trade, 2yr holding rule would apply. On sale may qualify for entrepreneurs relief I.e 10% cgt, business asset holdover would apply if re invest proceeds then into EIS and not would be continuous. I hope that helps it sounds like you need to seek specific advice, happy to help here or could maybe recommend someone where you are if you would prefer

[Rich135]

Thanks v much, I appreciate that. Agreed, some paid advice needed I think so I will speak to the guys that helped me before. Many thanks.