Capital Gains vs EIS losses

[UncleEbenezer]

I have a couple of EIS losses I'd like to offset against income tax. So far, so good: it's worked for me in the past.

However, I also have a non-EIS capital gain (as noted here). It's way below the £6k exemption, so in principle I shouldn't need to report it. But presumably if I fill in a Capital Gains section to claim my EIS losses, I should then not omit a capital gain? And the gain is a little bigger than the EIS losses!

How do these then interact? EIS rules allow me to claim losses against income tax. Does that still apply if I have non-EIS capital gains as well?

For added complication, the capital gain was on a Portuguese company, and so denominated in Euros. And there's a small holdback. Should I report the total receivable if the holdback gets paid in full, or just the amount received to date (I'd prefer all-at-once). And do I report it gross, or net of transaction costs?

[londoninvestor]

How do these then interact? EIS rules allow me to claim losses against income tax. Does that still apply if I have non-EIS capital gains as well?

Yes it does: the intent of EIS is to allow loss relief against income, even if the investor also has capital gains. See the HMRC manual:

Share Loss Relief allows capital losses which arise in respect of shares to be set against a person’s income providing certain conditions are met. Without the provisions which are now at ITA07/PT4/CHP6 and CTA10/PT4/CHP5, allowable losses computed under TCGA 1992 could only be relieved by setting them against chargeable gains on other assets. Relief against income may be more valuable to the investor than relief against capital gains, and the purpose of Share Loss Relief is to encourage entrepreneurs to invest in unquoted trading companies.

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But presumably if I fill in a Capital Gains section to claim my EIS losses, I should then not omit a capital gain? And the gain is a little bigger than the EIS losses!

Don't know for sure, but I agree with your presumption: I'd report the gain.

Should I report the total receivable if the holdback gets paid in full, or just the amount received to date (I'd prefer all-at-once). And do I report it gross, or net of transaction costs?

Not sure on this one, sorry.