EIS Trap

[@johnporcella2375]

Thanks for that, Simon. Well, that seems like a barmy rule to begin with! Why should NOT claiming an INCOME TAX relief affect a future CAPITAL GAINS TAX relief? Makes no logical sense. I suspect that this chap had made a capital gain in the past and had invested in an EIS to defer the gain. He could easily not have had any Income Tax paid or so little that he could not be bothered to make use of any of the 30% reduction.

[@simongray2484]

Yes indeed it’s a very strange rule, and it also came before the courts about 10 years ago… same result.