Chip on Crowcube funding round 2025 email 16/9/25

Tri2012

is there anyone else who has chips “shares* 
i invested through crowdcube in 2018, 2022 and 2023 and have 3 share certificates. The investments show 2 as nominee and one direct.  There’s also an EIS attached to the direct investment (details haven been completed apart from the name/signature by CHIP)

Im thinking of selling the shares now we’ve been given the opportunity.  I’ve no idea what thr EIS means.  I do know that if i make more than £3k then I’ll pay CGT.

Please can anyone explain in easy terms what the EIS means.

thank you

wmb194

Tri2012 said:

is there anyone else who has chips “shares* 
i invested through crowdcube in 2018, 2022 and 2023 and have 3 share certificates. The investments show 2 as nominee and one direct.  There’s also an EIS attached to the direct investment (details haven been completed apart from the name/signature by CHIP)

Im thinking of selling the shares now we’ve been given the opportunity.  I’ve no idea what thr EIS means.  I do know that if i make more than £3k then I’ll pay CGT.

Please can anyone explain in easy terms what the EIS means.

thank you

The Enterprise Investment Scheme. Crowdcube itself has a page with some examples but basically if you hold the shares for at least three years it offers you some tax relief.

https://www.crowdcube.com/explore/investing/tax-relief/eis

Tri2012

Thank you. 😊   I think I understand, only some of the share will be eligible for tax relief, also depends if the shares are sold, which could take 12 months. Isn’t an issue. 

masonic

Tri2012 said:

Thank you. 😊   I think I understand, only some of the share will be eligible for tax relief, also depends if the shares are sold, which could take 12 months. Isn’t an issue. 

Did you claim the up front 30% income tax relief you were entitled to?

Tri2012

Thank you.

Unfortunately I didn’t know  about the EIS until i looked at the document today and from my checking the crowdcube account all of  dates have now expired.

I’m assuming i could have claimed tax back on the 3 amounts i invested? 

I’ve chosen to sell all shares as I’m not in a position to keep adding funds not to dilute what i already have bought.

Think i’ve made more than a few novice errors and just want out when Chip eventually sell my shares, which could take a year. 

Share Issue Date

SEIS Share Issue Date

EIS Termination Date

29/04/2022	N/A	29/04/2025
27/12/2018	N/A	27/12/2021

mostwelcome

So in this case 'termination date' (sounds bad no? But I think it isn't) appears to be 3 years from the date of issue – which means once this date has passed, you can safely sell your shares without having to repay the upfront 30% EIS income tax relief.

However, it sounds like you did not claim the EIS income tax relief in the first place?

If so, it's half good news… You can claim EIS tax relief “up to 5 years after the 31 January following the tax year in which you made the investment” (source: Gov.uk) …which means you're too late for the first tranche (31 Jan 2025), but still in time for the second tranche.

If you've claimed EIS income tax relief, you also “normally pay no Capital Gains Tax (CGT) when realising EIS shares, if you have claimed income tax relief on them and the companies still qualify. This is known as ‘EIS disposal relief’” (source: Wealth Club).

So to sum up my understanding of the situation, you'd be able to claim EIS tax relief of 30% of your investment in the second tranche, and be CGT free if you sell those. But it'd be too late for the first tranche.