VCM38500 - Enterprise Investment Scheme (EIS): Deferral Relief - shares issued on or after 6 April 1998: Claims procedure

TCGA92/SCH5B/PARA6; ICTA88/S306; ITA/S203(1)

In order to claim deferral relief the investor will need to submit part 2 of the EIS3 (the compliance certificate) from the company in which the investment is made. This contains a claim form which the investor may use when submitting a claim (with or without a tax return). The EIS3 form must be submitted with the deferral relief claim whether the claim is made on the tax return or separately.

Guidance on the procedure to be followed by a company to obtain forms EIS3 for issue to investors is contained at VCM21000 onwards.

Relief must not be claimed until the investor has received that form. The EIS3 form contains details of:

• the amount paid on subscription for the shares,
• the company in which the investment has been made,
• the date the shares were issued,
• the office which deals with the company and the company's tax reference,
• the chargeable gains against which deferral relief is claimed.

No deferral relief should be allowed in the absence of an EIS3 form relating to that particular investment.

When a claim is agreed, you should send a copy of the claim form (attached to form MS117 (EIS), which is available on LFC) to the office dealing with the company and retain a copy in the permanent notes folder.

On receipt of the EIS3 the office dealing with the company should check that the issue of form EIS3 has been authorised and that the details returned agree.