Enterprise Investment Scheme share disposals - How to record the sale and claim disposal relief or share loss relief

If you have disposed of Enterprise Investment Scheme shares in 2023/24 , you should complete the capital gains summary pages and attach your calculations if:

• you sold or disposed of shares which were worth more than £49,200

• your chargeable gains before taking off any losses were more than £12,300

• you made a loss on sale of the shares

To make a claim for Enterprise Investment Scheme (EIS) disposal relief or share loss relief please follow the instructions below relevant to SimpleStep or HMRC forms mode.  

SimpleStep mode

1. Go to the Capital Gains section.

2. Go to the Asset Details screen, select the category 'Unlisted shares and securities'* and enter the details required. If there is a Loss after entering cost and disposal proceeds, please go to step 6.

3. Tick the box Tick box if you are claiming Entrepreneur's Relief or any other reliefs or elections for this asset e.g. Private Residence Relief, EIS Deferral Relief, Roll over / Hold Over relief.

4. Go to CGT Reliefs and enter the amount of the gain (available for relief) in the box EIS disposal relief – this will reduce the gain for tax purposes.                                                           

5. Go to Additional Information and explain EIS disposal relief is being claimed.

6. If, after step 2 there is a loss, you will need to reduce the loss for income tax relief originally claimed on the investment. This can be done by adding tax relief as a negative cost as follows:

   • Tick 'Any Additional Allowable Expenditure'

   • Enter the 'Nature of expenditure' as 'Original tax relief' and enter 'date incurred'

   • Amount the amount with a preceding '-' to ensure it is deducted from costs allowed, therefore decreasing the loss.

7. Now go to 2023–24 losses. Tick the box Do you wish to change the way in which losses are off-set?.

8. Enter the amount of loss in the appropriate box, depending on how you want to allocate it.

   • If offsetting losses against previous years, go to Working out your tax > Tax Adjustments > Adjustments to an earlier year, that decrease your tax and enter the tax adjustment – this is the difference in tax due in prior years after carrying the loss back to that year.

9. TaxCalc automatically attaches a PDF of the Capital Gains summary produced from the asset details entered.

* Unlisted shares category should be used even if the shares have since been listed. 

HMRC forms mode

1. Go to the Capital Gains pages and complete the information for the EIS disposal on page CG2.

   • Boxes 31 to 34 are required. (box 34 will be zero if you are claiming disposal relief for the whole gains) If there is a loss, please go to Step 4.

2. Enter 'OTH' (Other relief to inform HMRC that relief has been claimed) in box 36.

3. Go to CG3 and enter in box 54 Additional Information, an explanation that Disposal Relief is being claimed.

4. If you wish to offset the loss against other income, enter the loss in boxes 41 and 42 (page CG2)

5. If you wish to offset losses against the previous year's income, enter the loss in boxes 43 and 44 (page CG2)

   • If offsetting losses against previous years, go to Tax Calculation Page 2 > Box 15 'Decrease in tax because of adjustments to an earlier year'– this is the difference in tax due in prior years after carrying the loss back to that year.

6. Go to the Check and Finish page and select Attach.

7. You will need to provide a PDF copy of your summary of the gain/loss computation. Go to Check and Finish > Add your own attachment and click on Add PDF.

8. Browse to where the PDF summary and EIS certificate are saved and attach them.

For further assistance on EIS and Capital Gains Tax:

HMRC Helpsheet 297 explains more on Disposal/Deferral relief

HMRC Helpsheet 286  explains more on Negligible Value and Share Loss Relief claims

To make a claim for Enterprise Investment Deferral Relief please refer to our Knowledge Base article on: How do I make a claim for Enterprise Investment Scheme deferral relief?