How do I defer a capital gain?

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How do I defer a capital gain?

30 May 2019

EIS for investors


If you have a taxable capital gain from the disposal of an asset (e.g. a property), you can reinvest it in EIS-qualifying shares and defer the gain until the shares are sold.


To benefit from CGT deferral relief, an investor must have been resident in the UK both at the time when the chargeable gain on the disposal of the assets occurred and at the time of making the reinvestment.

The investment limits that apply to EIS income tax relief do not apply to deferral relief so relief can be applied to any amount invested in EIS-qualifying shares.

To qualify for Capital Gains Tax deferral relief, the EIS-qualifying investment must be made within either one year before, or three years after the date the gain to be deferred originally arose.



More information:

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How do I claim for a previous year?

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PLEASE NOTE:

To qualify for EIS relief, investors must be UK resident for tax purposes (or have UK tax liabilities) and subscribe cash for new shares in qualifying companies. Tax treatment is dependent on individual circumstances and may be subject to change. This content is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the information it contains. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this content. It is also important to realise that investing in small companies always carries risks, including the loss of capital, illiquidity (the inability to sell assets quickly or without substantial loss in value), lack of dividends and share dilution. Investments should still be made as part of a diversified portfolio.