Readers' forum : Unexpected benefit?

My client invested in a small company in two tranches the first qualifying for seed enterprise investment scheme (SEIS) relief the second for enterprise investment scheme (EIS) relief. The company has not prospered and I am wondering about the consequences of it being dissolved with no payment to investors.

The first tranche cost £70 000 which produced income tax relief of £35 000 and exempted a capital gain of £70 000 in 2012-13. The second tranche cost £170 000 producing income tax relief of £51 000 in 2013-14 and deferring a capital gain of £170 000 that had been realised in 2011-12.

The taxpayer received a repayment calculated at 28%. I think that the consequences of the write-off will be a loss of £35 000 on the SEIS shares and £119 000 on the EIS shares either of which can be set against income...