Help with claiming relief and what to do after a loss

Sncjw

 

I make small investmenrs via seedrs and I know I have till Jan to do the online self assessments but want to do it asap sp I remember. 

I am confusing with some wording about claiming the relief. I made further investments due to additional.rounds of investments. I am not sure if I can claim on these ones..

It says I can claim relief if 

you were issued shares on or after 18 November 2015 and already held other shares in the company that were not:

subscriber shares issued to you

shares for which you have received an EIS3

So can I submit further relief for the additional investments in the same company?

Also another question a company I claimed relief on last year has crumbled and we got pittance back in a goodwill gesture. What do I do in regards to that as I haven't had a gain. I got £2.32 back on a £30 investment. It is sitting in my seedrs account to use for another investment .

What do I do in regards to this..

Thank you 

Jeremy535897

I assume that the investments you made qualified for EIS relief, which you claimed? The quote you make only stops relief on further qualifying investments if you already hold shares that didn't qualify for EIS relief.

The sale at £2.32 creates a capital loss, which is £30 investment - tax relief at 30% £9 = £21 - £2 proceeds = £19, which you can net against any gains, or if none, carry forward to future years.

Sncjw

Yes it's eis. 

I just don't know how to do so that bit on the tax return. I haven't got any gains so far.in my investments. 

Also I have a couple more questions. When it says about state benefits do I need to tick yes if I get pip? 

Also can I claim for the eis relief on companies I have made further shares investment since my last tax return? 

Sncjw

Also I didn't sell the shares it was automatically done as the companies sold the owners shares to another companies. The investment share holders thought it was going ok then suddenly it folded. It still.showing as winding down on the seedrs page. 

This happen under three years so I hadn't actually held them for three years
.

Jeremy535897

See https://www.gov.uk/government/publications/enterprise-investment-scheme-and-capital-gains-tax-hs297-self-assessment-helpsheet/hs297-capital-gains-tax-and-enterprise-investment-scheme-2022--2

PIP is not taxable and does not need to be disclosed.

Sncjw

Still confused how to do it. I didn't want to sell them it was just done..

Jeremy535897

It doesn't matter what you wanted. What matters is that the shares were sold.

As the shares were sold within three years, a part of the EIS relief is withdrawn. That is basically 30% of the proceeds. You can amend the return on which the original EIS claim was made, or otherwise HMRC should assess it. For 60p I cannot imagine it is worthwhile.

You will have a capital loss as I indicated earlier of £19 (or perhaps £20 if EIS relief is withdrawn in part). Personally, I would not bother claiming this trivial sum, but if you want to, complete form SA108 and put the details in the unlisted investments section. The proceeds are £2 and the cost is £21. The loss is £19.

Surely SEEDR should give you guidance on all of this? It is unwise to make investments when you don't understand the terms on which the investment is made or the tax consequences of a disposal.