EIS: disposal relief: part-disposal: example
- July 2010 an investor subscribes £100,000 for 100,000 shares in an EIS company. Income Tax relief of £20,000 is given in 2010-11 as the EIS rate is 20%.
- January 2012 the investor sells 25,000 shares for £10,000. Income Tax relief of £2,000 is withdrawn, (£10,000 x 20%, the EIS original rate). Income Tax relief of £3,000 attributable to the shares sold is not withdrawn. The allowable loss is calculated as below.
|Disposal proceeds||£ 10,000|
|Reduced by Income Tax relief*||£ 3,000||£ 22,000|
*This is the EIS Income Tax relief not withdrawn which remains attributable to the 25,000 shares sold.