At Oakmount and Partners, we understand that investing in early stage companies through the Enterprise Investment Scheme (EIS) can provide attractive tax relief benefits. Here’s what you need to know about claiming EIS tax relief.
What You Need to Have on Hand to Claim EIS Tax Relief
To claim EIS tax relief, you’ll need:
- Your EIS3 certificate(s) – this is issued by the company you invested in to certify your investment qualifies for EIS tax relief. Make sure you receive this within 2 years of making the investment.
- Records of your EIS investments – dates, amounts invested, and the company invested in.
- Your tax return and supporting documents.
Having these documents on hand will make the process of claiming tax relief straightforward.
How to Claim EIS Tax Relief on Your Paper Tax Return
If you file a paper tax return, here are the steps to claim EIS tax relief:
- Complete the EIS3 certificate details in the appropriate section of your Self Assessment tax return.
- Calculate and claim income tax relief of 30% of the amount invested.
- Carry back or carry forward any unused relief.
- Provide the EIS3 certificates and details of investments as supporting documentation.
- Submit your completed tax return to HMRC.
The tax relief will then be applied to reduce your tax liability for that year.
How to Claim EIS Tax Relief in Your Online Self-Assessment Form
To claim EIS tax relief through your online Self-Assessment account:
- Log into your account and find the section for reporting EIS investments.
- Enter the details from your EIS3 certificates – the date of issue, the company name and tax reference, and amounts invested.
- Review the pre-populated tax relief calculations and amounts.
- Submit the information online along with your digital tax return.
- Digitally attach scanned copies of your EIS3 certificates and investment records.
The online process is quick and easy for claiming the tax relief due on your EIS investments.
Alternative Way to Claim EIS Tax Relief
If you used an EIS fund manager or financial advisor, they may be able to claim EIS tax relief on your behalf by completing the relevant sections of your Self-Assessment return.
Check if they offer this service to save you time and ensure your tax relief claims are maximised and compliant.
At Oakmount and Partners, our team is happy to provide guidance on claiming EIS tax relief and ensure you receive all the tax benefits you’re entitled to. Get in touch to discuss your EIS investments and tax relief claims.
EIS Tax Relief Specialists
Oakmount and Partners, we are award-winning alternative investment specialists who generate well-above market rate returns for a plethora of investors, both individual and institutional.
Our team of experienced investment professionals thoroughly research and evaluate early stage companies for EIS funding opportunities. We are dedicated to helping our clients maximise tax relief benefits and realize their investment goals.
Contact us today to see how we could enhance your portfolio.
