Confused about tax relief on seedrs

Sncjw

Hi 

I got a few shares with various companies via seedrs and they send eis tax relief certificates. I have read the information on seedrs and still confused by it.

Will it affect my tax code and also when it comes to selling my shares via the secondary market will it affect that too.

Thank you 

Dazed_and_C0nfused

It doesn't have to impact your tax code but one of the selling points of this type of set up is the tax advantages.

Have you never claimed EIS income tax relief?

Sncjw

Dazed_and_C0nfused said:

It doesn't have to impact your tax code but one of the selling points of this type of set up is the tax advantages.

Have you never claimed EIS income tax relief?

No I haven't as I am confused about it..

Dazed_and_C0nfused

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/eis-vct-seis/

redpete

Sncjw said:

Hi 

I got a few shares with various companies via seedrs and they send eis tax relief certificates. I have read the information on seedrs and still confused by it.

Will it affect my tax code and also when it comes to selling my shares via the secondary market will it affect that too.

Thank you 

You need to either include the EIS investment amounts on a Self Assessment return or inform HMRC specifically about the investments.  This would result in you gaining tax relief of 30% of the amount invested and you will owe less tax.  For me I submitted a SA return and I expect to receive a refund into my bank account of the overpaid tax.  I don't expect HMRC to adjust my tax code.

If you sell the shares within three years, you lose tax relief.