Didn't ask for an EIS 3 can I still claim any relief?

I invested in Freetrade shares in 2019 but did not ask for eis as I didn’t know what it was at the time.
Despite this can I claim any kind of relief i.e cgt and if so can it be added on my next sa return or do I need to go back and do it on my 19-20 return?

many thanks in advance

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Yes. You have up to 5 years to claim eis

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It’s not too late to claim. You do need to do it to get the CGT relief

I didn’t ask for the eis cert though

Can you still download if from crowdcube?

Only my share cert is there, I have asked but no reply

@Stav This is your field of expertise if I’m right, Do you need to amend the previous submission or can you put it in this year? Also do HMRC request a copy of the EIS certificate?

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I can answer the last part, they don’t require you to send a copy but can ask for one.
Also there is info on the cert that you need to make the claim

Agree with @Talby on the last point - also noting strictly you should NOT claim the tax relief unless you actually have the EIS3 (paper or electronic). If they ask for it, get it quick!

Regarding the claim, it must be claimed for the year of investment (ie the year in which the shares were issued) or the previous tax year - although you have a number of years before the deadline runs out to claim it. If you are out of time to amend your tax return (or don’t do a return) you would just write to HMRC and specify the year for which you want to claim relief - a claim “outside of the return”.

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So I need the cert, hopefully CC can furnish me with one, they should just have issued them regardless if we were entitled.

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I invested in 2019 and 2020.

I claimed EIS in 2020, but not in 2019 as I didn’t have any income that year. Is it possible to claim CGT relief still or not?

Hi @zaheer

Unfortunately not - you need to have had at least some income tax relief. So when you sell the 2019 shares (complex pooling rules to determine that) it will be chargeable to CGT although your annual exempt amount (AE) will cover the first £12.5k or so of the gain. Selling shares across two or more tax years obviously therefore makes sense if feasible, as more gain will be tax free.

This guide will be useful for you and anyone else. There’s a similar one for income tax.

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Contacted CC and got this back
Thank you for your email.

I’ve checked your account and I’m afraid that you were not opted in to receive tax relief when you invested in Freetrade in 2019.
As this is the case, I’m afraid there was no EIS allocated to your investment and therefore no tax certificate is due to you.
Unfortunately we are unable to retrospectively apply tax relief to investments, once the share documents have been issued.
Apologies that this is the case.

Kind regards,

Jen Richardson | Senior Investor Operations Executive

I was aware of the capital gains allowance but since 2019 I now have considerable investments not sheltered by an ISA.

Anyway thanks for your input everybody.

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Hi there

I am currently writing to HMRC to claim income tax relief and more importantly future CGT relief for a 2019 EIS investment in Freetrade.

Having looked on various government websites it’s not actually clear who I should be sending the letter to. It seems wrong to send it to the self assessment centre. Would you know where this letter is best placed to go?

Thanks

Think it’s just the standard address, That’s the address I’ve used in the past. (I’m PAYE)

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

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I concur with @Dave

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Let us all know how you get on.

Will do, I have sent the letter off today. So I will fill back in here with the end result.