Combining EIS and taper relief

The taxpayer disposed of a number of properties some of which has been used for business purposes while some had been used only for non-business purposes and others  had been mixed use.

He claimed enterprise investment scheme relief and stated it should be used first in respect of capital gains on the non-business properties and second on the mixed-use assets.

When he submitted his tax return he claimed taper relief under TCGA 1992 Sch A1 para 3 requesting that with regard to the mixed-use assets they were deemed to be separate disposals of the business and non-business assets.

HMRC said the taper relief provision that deemed the gain on mixed-use assets to be two separate gains on two separate assets was expressed in the legislation to be ‘for taper relief purposes’ and it was only...