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HMRC internal manual

Venture Capital Schemes Manual

EIS: deferral relief: shares issued before 6 April 1998: introduction


Individuals who incur chargeable gains can make a claim to defer that gain if they subscribe for shares. For shares issued before 6 April 1998 deferral relief was only available for shares on which EIS Income Tax relief was obtained. For years up to and including 1997-98 the amount of deferral relief is limited to subscriptions of up to £100,000 for shares issued in any one tax year. To qualify the shares subscribed for must be issued in the period which runs from one year before to three years after the disposal. The deferred gain is brought back into charge on a later disposal of the shares and if certain other events occur. Deferral relief was extended to include shares on which EIS Income Tax relief was not available for shares issued after 5 April 1998, see VCM23000 onwards.