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Previously, gains that qualified for CGT entrepreneurs’ relief (ER) but were deferred into an Enterprise Investment Scheme (EIS) or Social Investment Tax Relief (SITR) investment essentially lost the benefit of ER on subsequent sale.
However, the Autumn Statement has revised this position such that, if the original disposal qualified for ER, then the gain will remain eligible for ER as and when the investment is ultimately realised.
This will be of benefit for gains reinvested into EIS or SITR on or after the 3rd December 2014 where ER would have been lost when the EIS/SITR shares are sold.
Draft legislation is expected in Finance Bill 2015.