Chartered Institute of Taxation sought clarification from HMRC
HMRC has confirmed that, contrary to some press reports, there has been no extension of the seed enterprise investment scheme introduced in last year’s Finance Act.
Last week the Financial Times reported that, according to a ‘senior official’ at HMRC, the relief was ‘being extended for another year’. The Daily Telegraph said HMRC had indicated that investors ‘can use a process called “carrying back” to avoid paying CGT on money put into companies before April 2014 – 12 months longer than previously thought’.
But HMRC has confirmed that there has been no change in government policy or legislation, the Chartered Institute of Taxation announced yesterday.
The effect of the rules enacted in FA 2012 was that ‘if an investor re-invests a capital gain arising in 2012/13 in SEIS shares either in 2012/13, or in 2013/14 subject to an election [under ITA 2007 s 257AB], then that gain is exempt from capital gains tax’. However, the legislation ‘does not permit the amount of a 2013/14 gain to be invested in 2013/14 and become exempt from capital gains tax’.
Chartered Institute of Taxation sought clarification from HMRC
HMRC has confirmed that, contrary to some press reports, there has been no extension of the seed enterprise investment scheme introduced in last year’s Finance Act.
Last week the Financial Times reported that, according to a ‘senior official’ at HMRC, the relief was ‘being extended for another year’. The Daily Telegraph said HMRC had indicated that investors ‘can use a process called “carrying back” to avoid paying CGT on money put into companies before April 2014 – 12 months longer than previously thought’.
But HMRC has confirmed that there has been no change in government policy or legislation, the Chartered Institute of Taxation announced yesterday.
The effect of the rules enacted in FA 2012 was that ‘if an investor re-invests a capital gain arising in 2012/13 in SEIS shares either in 2012/13, or in 2013/14 subject to an election [under ITA 2007 s 257AB], then that gain is exempt from capital gains tax’. However, the legislation ‘does not permit the amount of a 2013/14 gain to be invested in 2013/14 and become exempt from capital gains tax’.
