Hi all, sorry if this is a bit of a basic question but I couldn't find a definitive answer anywhere. Can I sell a portion of an investment within 3 years (via a secondary market or private sale) and keep the EIS on any remaining portion?
Interesting question @dk1. I've tried to find gov/HMRC advice on this, but worried I wouldn't find anything explicit in time for Seedrs' next market open. Out of curiosity I will continue to chase this, i'll report back if I find an answer.
Having said that, I have anecdotal evidence: I know a few people who've done exactly this, but sold (some of) their shares before claiming EIS relief; iirc, on the classic paper EIS forms, there's a box where you write the amount of shares you wish to claim on - making it fairly simple.
If you're claiming EIS after selling, presumably HMRC would just clawback tax relief in accordance with the number of shares you sold. I don't know of anyone that's sold shares partially in this manner though.
Sorry I couldn't be more help! Not financial/tax advice ofc.
Interesting question @dk1. I've tried to find gov/HMRC advice on this, but worried I wouldn't find anything explicit in time for Seedrs' next market open. Out of curiosity I will continue to chase this, i'll report back if I find an answer.
Having said that, I have anecdotal evidence: I know a few people who've done exactly this, but sold (some of) their shares before claiming EIS relief; iirc, on the classic paper EIS forms, there's a box where you write the amount of shares you wish to claim on - making it fairly simple.
If you're claiming EIS after selling, presumably HMRC would just clawback tax relief in accordance with the number of shares you sold. I don't know of anyone that's sold shares partially in this manner though.
Sorry I couldn't be more help! Not financial/tax advice ofc.
Much appreciated Nathan. Don't worry though I'm in no rush, was more theoretical.