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Step-by-step Guide

How do I make a claim for Enterprise Investment Scheme deferral relief?

Article ID: 2063
Last updated: 03 Aug, 2023

Deferral Relief allows you treat the gain as not arising until some future date, if you acquire EIS shares with the proceeds of a disposal of an asset.

To claim for Enterprise Investment Scheme (EIS) deferral relief on an Individual tax return, you need to enter details of the asset under Capital Gains. If you already have a PDF summary of the information relating to Capital Gains, you may wish to use HMRC Forms mode, otherwise use SimpleStep which will provide a pdf schedule and attach it automatically to the return.

SimpleStep mode

  1. Complete the Asset Details screen.
  2. Tick Tick box if you are claiming any other reliefs or elections for this asset e.g. Private Residence Relief, EIS Deferral Relief, Roll over / Hold Over relief click next step.
  3. In the box labelled EIS Deferral relief, enter the amount of the gain being deferred. This will decrease the gain for capital gains tax purposes. 
  4. You must complete the claim form attached to the EIS3 certificate you should receive from the company you’ve invested in, scan and save the form as a PDF file and attach to the return. This can be done in Check and Finish > Add your own pdf attachment the form > Add PDF.

You will see that TaxCalc has automatically created a PDF attachment detailing the disposal and deferral relief claimed.

HMRC Forms mode

  1. Go to the Capital Gains pages and complete the information on CG1 and CG2, filling in the asset disposal details in the relevant section, depending on the asset type. You will need to deduct the deferral relief from the Gains in the year amount entered.
  2. In each section there is a box for If you are making a claim or election - the code for deferral relief is 'OTH' or 'MUL' if you are claiming more than one type of relief.
  3. You must complete the claim form attached to the EIS3 certificate you should receive from the company you’ve invested in, scan and save the form as a PDF file and attach to the return. This can be done in Check and Finish > Add your own pdf attachment the form > Add PDF.
  4. In addition to the EIS3 certificate, you will need to attach a PDF of the disposal details.

When the gain is revived at a later date, due to the disposal of the EIS shares acquired, the asset details should be entered in the tax return of the year of the EIS disposal, with the original amounts of the deferred gain used.

For further assistance on EIS and Capital Gains Tax, read the HMRC helpsheet.

To make a claim for Enterprise Investment Disposal Relief please refer to our Knowledge Base article on: How do I make a claim for Enterprise Investment Scheme disposal relief?
Article ID: 2063
Last updated: 03 Aug, 2023
Revision: 21
Views: 3688
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Also read
item Enterprise Investment Scheme share disposals - How to record the sale and claim disposal relief or share loss relief

Also listed in
folder Tax Return Production -> SA100 Individual Return