If EIS shares are sold at a loss (after income tax relief), the loss can offset capital gains or income in the same or previous tax year, or be carried forward.
For losses offset against income, a 45% taxpayer limits exposure to 38.5p per £1 invested, and a 40% taxpayer to 42p per £1 if shares become worthless.
To find out more about loss relief impacting S/EIS investments, IFA/GBI Magazine has published the Tax Efficient Investments Research Report 2025, offering unstructured CPD for advisers.
Access your complimentary copy here
