Tax on share investmenrs

Sncjw

Hi all

I have bought several shares via seedrs and crowd cube but more so with seedrs as more companies I know or would like to Invest in. 

I have asked hmrc about doi g self assessments but they said I don't need to as I haven't sold them. 

I've read stuff on seedrs but I still don't fully understand it. 

When do I need to pay tax and what kinds. Also there's some that are eis elegiable but not sure if that applies to Me.

I havent invested more than 50 quid per compaby in order to spread Investment out and also only using money I can afford to lose if needed.

Thank you 

eskbanker

https://www.gov.uk/capital-gains-tax applies when disposing of assets, but you have a £12,300 annual allowance, so would only be liable for taxation if your chargeable gains exceed that in the year of disposal, so is unlikely to be an issue if it's just 'play money' in £50 territory.

https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors explains EIS relief where applicable.

There is also potentially income tax due on dividends beyond £2K, but again that probably doesn't apply....

MX5huggy

There’s 2 tax’s on shares I expect you aren’t going to be paying either. 

Dividend tax if you receive more than £2000 in 1 year of dividends from all your shares (not in ISA’s). https://www.gov.uk/tax-on-dividends

Then Capital Gains Tax you only pay this when you sell shares for a profit (again not in ISA’s). You have an annual allowance of £12300 currently per year. https://www.gov.uk/capital-gains-tax
If you have picked the next Tesla the CGT will hurt. 

steampowered

When you have your EIS3 form, you can claim tax relief on your SEIS/EIS investments. The EIS3 form should be issued to you within a few months of investing via the Seedrs/Crowdcube platform.

When you complete your self-assessment on the HMRC website, there is a section for EIS reliefs. The self-assessment process guides you, I did it last year and think I had to provide details like the name of the company, date invested, amount invested etc.

HMRC then calculates the amount of tax relief you are entitled to. You can receive your tax refund through your tax code or just by bank transfer. I elected to get it via bank transfer.

EIS tax relief is 30%. So, if you qualified for EIS on a £50 investment, you'd get £16.66 back from HMRC. 

There is some information here https://help.crowdcube.com/hc/en-us/articles/206709830-How-do-I-claim-EIS-or-SEIS-on-my-investment-