VCM23200 - EIS: deferral relief: shares issued on or after 6 April 1998: claims procedure

TCGA92/SCH5B/PARA6; ICTA88/S306; ITA07/S203(1)

General

In order to claim EIS deferral relief the investor must have received a compliance certificate (form EIS3) from the company in which the investment is made. The EIS3 consists of two parts:

  • a certificate confirming details of the company and the investment made

and

  • a claim form and declaration.

The investor must use the claim form and complete the declaration when making a claim for EIS deferral relief, whether the claim is made in the Self-Assessment tax return or separately. In certain circumstances the claim form may also be required for making a claim to EIS income tax relief, for further guidance see VCM14140.

Guidance on the procedure to be followed by a company to obtain forms EIS3 for issue to investors is contained at VCM14080 onwards.

Form EIS3 - certificate

The certificate must be completed by the company before it is issued to the investor to show details of:

  • the number of shares subscribed for and amount paid,
  • the company in which the investment has been made,
  • the date the shares were issued,
  • the unique investment reference (UIR).

The certificate should be retained by the investor as they may later be required to provide this in support of any claim to relief.

Claiming EIS deferral relief

An investor cannot make a claim to relief until they have received a form EIS3.

For every claim for EIS deferral relief the claim form and declaration should be completed by the investor to show:

  • the investor’s tax reference and NINO
  • the name of the company
  • the details of the subscription
  • the UIR
  • the chargeable gains against which deferral relief is claimed.

If the chargeable gain accrues in the current tax year and the shares were issued either in this year, or in a previous year, the completed claim form should be sent in with the Self Assessment tax return after the end of the tax year.

Details of the relevant chargeable gains will also need to be entered in the capital gains tax summary pages of the Self-Assessment tax return (guidance on completing the capital gains summary pages can be found in Helpsheet 297.

If the chargeable gain accrued in a previous tax year the completed claim form should be sent to HMRC along with the Self-Assessment tax return if not already submitted.

Instructions for the investor’s tax office

No deferral relief should be allowed in the absence of an EIS3 form relating to that particular investment.

On receipt of the claim the office dealing with the individual should check that the UIR relates to an authorised EIS3 and that the details returned agree, also see VCM14170.