Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Hawker74
    • By Hawker74 9th Jan 18, 6:11 PM
    • 1Posts
    • 0Thanks
    Hawker74
    Offsetting a Capital Gains Tax Bill
    • #1
    • 9th Jan 18, 6:11 PM
    Offsetting a Capital Gains Tax Bill 9th Jan 18 at 6:11 PM
    In this financial year I incurred a capital gain through the sale of a business. I was lucky to qualify for Entreprenerial relief but I am still expecting a tax bill of around 30,000 for the 17/18 tax year, which I understand I will need to settle in January 19.

    I have recently had my head turned by SEIE and VCTs. I understand with one of these schemes I can claim up to 30% releif if I inevest and abide by the rules of the scheme for 3 years?

    Is it that simple? If I invested say 90,000 would my cap gains tax bill be lowered by 27k?

    If so, do I have to make the investment this year or could I make it in 18/19 ?

    Where do I find a list of investments? I'm not a novice investor and mange my own ISA and SIPP portfolio with HL

    Thanks in advance.
    Last edited by Hawker74; 09-01-2018 at 6:25 PM.
Page 1
    • Alexland
    • By Alexland 10th Jan 18, 10:46 PM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    • #2
    • 10th Jan 18, 10:46 PM
    • #2
    • 10th Jan 18, 10:46 PM
    Sorry nobody in this sub-forum has been able to help you on this query. You may do better asking on either the main Savings & Investments or Cutting Tax forums.
    • teime
    • By teime 11th Jan 18, 3:51 PM
    • 1 Posts
    • 0 Thanks
    teime
    • #3
    • 11th Jan 18, 3:51 PM
    Tax Efficient Investments
    • #3
    • 11th Jan 18, 3:51 PM
    You could invest in a Seed Enterprise Investment Scheme (SEIS) Fund and reduce your CGT bill by 50% through 'Reinvestment Relief' - more info on HMRC website.

    Or you could invest in an Enterprise Investment Scheme Fund - which allows you defer paying the CGT amount invested l for the life of the investment.

    List of SEIS/EIS providers on the EISA website.

    I have a few favourites, but I'll let you decide.
    • simoncov
    • By simoncov 14th Jan 18, 9:36 AM
    • 1 Posts
    • 0 Thanks
    simoncov
    • #4
    • 14th Jan 18, 9:36 AM
    • #4
    • 14th Jan 18, 9:36 AM
    That's my understanding too. For example search: "SEIS Reinvestment Relief".
    "When you dispose of an asset and make a gain you usually pay Capital Gains Tax for the tax year in which you dispose of the asset. Reinvestment relief lets you treat 50% of a gain arising in tax year 2014 to 2015 as exempt from Capital Gains Tax if you acquire SEIS shares."
    So if you made an SEIS qualifying investment in the 2018/19 tax year you would be able to claim 50% CGT "reinvestment relief" for the 2017/18 tax year, if I've understood it correctly around 15k in your case (you don't get the reliefs automatically you have to claim e.g. via your tax return). So this isn't something you need to rush to do before the end of March AFAIK.
    I'm not sure whether you can claim reinvestment relief on EIS investments, maybe only higher risk SEIS.
    These types of investments are quite specialised and higher risk (e.g. liquidity) than investing in listed shares so definitely worth learning more about them and/or getting advice before jumping in.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

884Posts Today

6,496Users online

Martin's Twitter