EIS3 Form: Claim EIS Tax Relief Benefits & Submit to HMRC

What is the EIS3 Form?

The EIS3 Form is a certificate issued by HMRC to investors who buy shares in a company under the Enterprise Investment Scheme (EIS). This form serves as evidence that investing attains qualification for investment tax relief, allowing investors to claim income tax relief of up to 30% on their investment under eligibility. This enables them to postpone capital profit tax on other assets by strengthening profit in EIS-qualified shares. The issuing company must submit the EIS1 compliance details to the HMRC before receiving approval to issue EIS3 certificates to investors.

Once an investor receives the EIS3 form, they can claim relief by submitting their self-assessment and submitting it with returns. If an investor wants to postpone the capital profit tax, they have to complete the relevant section in the form. The document includes details about the investment, including the company name, share issue date, and the amount invested. If an investor sells his EIS shares within three years, they may have to pay relief by receiving them. The EIS3 form is important for investors who are looking at the advantage of the tax incentive given under the enterprise investment scheme.

How Do You Obtain an EIS3 Form?

To obtain the EIS3 form, investors must first subscribe to shares in the company that qualify for the enterprise investment scheme (EIS). Once the company receives approval from HMRC to confirm its EIS status, it will issue an EIS 3 certificate to eligible investors. This certificate serves as evidence of investment qualification under EIS, allowing investors to claim income tax relief and other related tax benefits.

The issuing company EIS is responsible for applying to HMRC for approval and distributing the form to investors once approved. Investors cannot request the EIS3 form directly from HMRC; It should come from the company in which they invested. If an investor has not received his form, he should contact the company’s finance or compliance team. The EIS3 form is important to claim 30% income tax relief, capital profit tax exemption, and loss relief where applicable. Once obtained, investors have to complete the relevant sections and submit them with their self-assessment and returns to claim tax benefits.

How to Complete the EIS3 Claim Form Correctly?

Filling out the EIS3 claim form accurately is crucial to avoid processing delays with HMRC. The form includes multiple sections that require precise information. Here’s how to complete it:

1. Personal Details: Provide full name, address, and Unique Taxpayer Reference (UTR).
2. Investment Details: Enter the company’s name, share issue date, and the amount invested.
3. Tax Relief Claim—Specify the amount of income tax relief being claimed.
4. Carry Back Relief: Investors can claim relief for the previous tax year if applicable.
5. Declaration: Sign and date the form to confirm the accuracy of the information.

It’s important to check all entries before submission. Investors can refer to an EIS3 form example for guidance.

How Can You Submit the EIS3 Form to HMRC?

You can submit your EIS3 to HMRC online or by post. If you choose to file electronically you can use HMRC’s online services or submit a scanned copy via email to the address shown in the EIS guidance. Make sure all the details are completed including the unique investment reference (UIR) and the amount invested before submission. If you post it, make sure the EIS3 matches the address on the form. Keep a copy for your records as you may need it for future tax claims.

Once submitted HMRC will review your EIS3 to verify your eligibility for tax relief. If approved you can claim income tax relief or capital gains tax relief through your self-assessment tax return. Make sure you attach the EIS3 certificate details when claiming relief to avoid delay. If an error is found HMRC may ask for more information which can extend the processing time. If you don’t hear back within the time frame you can contact HMRC’s EIS helpline for an update on your submission.

What is the Difference Between EIS3 and EIS5 Forms?

The EIS3 and EIS5 forms are the two main documents in the EIS but they do different things. The EIS3 form is issued to individual investors after they have invested in an EIS-qualifying company. It’s proof of investment so investors can claim income tax relief and capital gains tax relief. The form has the investor’s name, the amount invested, and the company receiving the funds. Investors must submit this form to HMRC when claiming tax relief.

In contrast, the EIS5 form is issued to EIS fund managers, not individual investors. When a fund invests in multiple companies under the EIS scheme the EIS5 form confirms the total amount invested across all eligible companies. Investors in an EIS fund do not receive individual EIS3 forms but instead rely on EIS5 to claim tax relief proportionate to their share of the fund’s investments. So EIS3 is for direct investors and EIS5 is for pooled investment funds under EIS.

How Long Does It Take to Receive EIS Tax Relief After Submitting the EIS3 Form?

After submitting the EIS3 form, investors typically get their enterprise investment plan (EIS) tax relief within four to eight weeks. Processing time depends on the charge of HMRC and whether all the necessary information is provided correctly. If there are errors in the application or they require additional verification, HMRC may request further details, which can delay the process. To avoid delay, investors must ensure that the details on the EIS3 form match their tax return and that all auxiliary documents are in order.

Once approved, EIS tax relief is usually applied as a decrease in an investor’s income tax liability for the year. If the investor has already paid tax, he may get refunds directly from HMRC. Alternatively, they can choose to withdraw relief in the last tax year, potentially increasing their refunds. People applying for Capital Gains Tax Deferral Relief may experience a long-term processing time, as HMRC reviews these claims separately. Investors should monitor their tax account for updates and contact HMRC if they experience significant delays.

Conclusion

EIS3 Form EIS is an essential document for investors claiming tax relief. It is issued by companies after receiving approval from HMRC and must be completed accurately before submission. Investors can choose between postal and online submissions to record their claims efficiently. Understanding the differences between EIS3 and EIS5 forms helps investors navigate the enterprise investment plan process smoothly. Keeping track of submitting the time limit and ensuring the correct details can help investors get tax relief within the appropriate time limit.

FAQs 

1. Where Can I Find an EIS3 Claim Form PDF?

Investors looking for an EIS3 claim form PDF can usually obtain it from the company that issued their shares. Companies provide the form after receiving approval from HMRC. If an investor has misplaced their form, they should contact the issuing company for a copy.

2. How to Claim EIS Tax Relief Using the EIS3 Form?

To claim EIS tax relief, an investor must:

• Fill out the EIS3 claim form with personal and investment details.
• Attach the completed EIS3 certificate to their Self-assessment tax return.
• Submit the form either online or by post to HMRC.

3. Can I Backdate an EIS3 Claim for a Previous Tax Year?

Yes, investors can carry back relief using the EIS3 form, meaning they can apply for tax relief for the previous tax year instead of the current one. This option is useful for those who want to offset past income tax liabilities.

4. Is the EIS3 Certificate the Same as the EIS3 Form?

The EIS3 certificate and the EIS3 form are the same document. It provides proof that an investment qualifies for EIS tax relief and must be used when filing a claim. Without this form, HMRC will not process the tax relief request.

5. What Happens if My EIS3 Claim Form Has Errors?

If there are mistakes in the EIS3 claim form, HMRC may reject the claim or delay processing. Investors should double-check details such as the company name, investment amount, and issue date. If an error is discovered after submission, investors should contact HMRC immediately to correct it before tax relief is applied.