Any capital loss made on the sale of shares in EIS Qualifying Companies can be offset against either capital gains in the tax year when the loss occurs or can be carried forward against capital gains in subsequent tax years or could be offset against income of that tax year or the preceding tax year. Where an investor has been granted EIS Relief, the capital loss is calculated net of EIS Relief.
Example
£
Realised value
Nil
Initial investment
50,000
EIS relief
(10,000)
Loss relief (£40,000 x 40%)
(16,000)
Net loss on investment
24,000
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