Some years ago we invested 15k in an EIIS that went into liquidation a year later. My question is can we claim that loss against an upcoming CGT bill in the same way as our losses on bank shares.
I looked at this a number of years back and the answer was no. There is a convoluted computation whereby the capital loss is reduced by the amount qualifyng for tax relief. I would add that this was a number of years ago and I don't know what the current rules are - they may not have changed.
I've been told that many people mix up income tax relief and CGT loss on the EIIS. So while you can't use EIIS income-tax relief to offset CGT, you can claim a CGT loss on the shares themselves. I don't understand why bank share losses differ from EIIS share losses. I think there may be a claw back of the income tax relief too which is fair enough I suppose but why do these things have to be so confusing - well for me anyway!