# SEIS / EIS Capital Gains for UK Non Resident



## mt3467 (Mar 6, 2019)

Quite a niche question but throwing it out there on the off chance someone has experienceas more and more people have shares through crowdfunding sites these days...

In the UK you can acquire shares through SEIS (Seed Enterprise Investment Scheme) / EIS. A benefit is that when sold they do not incur any capital gains.

I will be tax resident in Australia this year, completing a UK tax return as a non-resident. Will i need to pay CG if I sell my shares? I'm assuming I won't have to pay the UK, but will I have to declare the sale to Australia and they'll charge me CG? Or do Australia recognise SEIS / EIS and not demand CG on disposal?


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## Moulard (Feb 3, 2017)

While Oz has a similar sort of scheme, the rules are quite different. At best it might be recognized under Australian tax rules, at worst it will be seen as a normal capital gain.

Here is the ATO page on similar scheme here...









Tax incentives for early stage investors


From 1 July 2016, investors who purchase new shares in a qualifying early stage innovation company (ESIC) may be eligible for tax incentives.




www.ato.gov.au





The big question will be does a UK startup meet the Oz ESIC requirements. This is outside my wheelhouse, but hopefully the above will lead you down the right rabbit hole.

Probably worth ringing the ATO, and if sums are large you may want to get Administratively Binding Advice.

FWIW the folks at the ATO are generally quite helpful.


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## mt3467 (Mar 6, 2019)

Appreciated, thank you!


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## Moulard (Feb 3, 2017)

This may help to determine eligibility. 









ESIC decision tool


The ESIC decision tool will help you work out whether you're eligible for the early stage investor tax offset, or if a company qualifies as an early stage innovation company.




www.ato.gov.au


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