Loss Relief
Any capital loss on the sale of shares in Investee Companies made through a Fund can be offset against either:
-
capital gains in the tax year when the loss occurs;
-
or can be carried forward against capital gains in subsequent tax years; or
-
income of that tax year or the preceding tax year.
Where an Investor has been granted EIS Relief, the capital loss is calculated net of EIS Relief.
Example:
| £ | |
|---|---|
| Initial Investment (net of charges) | 50,000 |
| EIS Relief @ 20% | (10,000) |
| Loss Relief (£40,000 x 40%) | (16,000) |
| Net Cost of Investment | 24,000 |
