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I sold some shares at a gain. The shares were all acquired at the same time and were of mixed use for taper purposes. Within three years, I subscribed for some shares in another company for cash. The new shares qualified for enterprise investment scheme (EIS) capital gains tax deferral relief. I calculated the gain before taper, apportioned this between business assets (BA) and non-business assets (NBA) as per TCGA 1992, Sch A1 para 3(5)(a) and the EIS claim was made against the NBA element in order to freeze part of the gain.
I sold some shares at a gain. The shares were all acquired at the same time and were of mixed use for taper purposes. Within three years I subscribed for some shares in another company for cash. The new shares qualified for enterprise investment scheme (EIS) capital gains tax deferral relief. I calculated the gain before taper apportioned this between business assets (BA) and non-business assets (NBA) as per TCGA 1992 Sch A1 para 3(5)(a) and the EIS claim was made against the NBA element in order to freeze part of the gain.
HMRC have rejected the claim quoting Daniels v HMRC and CG17895 so that taper relief is only applied after deferral relief. This I agree but HMRC then say that the EIS deferral is applied to the total gain which is then split into the BA/NBA elements before taper is...
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