There are some very attractive schemes in the UK which help reduce your tax bill as you invest.
There are 4 types of relief for investment into qualifying companies.
EIS, SEIS, VCT and SITR
Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
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Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
London WC1N 2EB
There are some very attractive schemes in the UK which help reduce your tax bill as you invest.
There are 4 types of relief for investment into qualifying companies.
EIS, SEIS, VCT and SITR
They are all fairly similar and incredibly attractive, with a range of tax reliefs connected around making investments in risky young businesses, or investing in a social enterprise.
A word of warning however. The schemes are by their definition applicable to start ups and can therefore put your capital at risk. They are incredibly complicated and with strict rules. Once you are invested in or offer such a scheme, relief can easily be lost or withdrawn by either the actions of the company or the investor.
We have the expertise to give you the advice that you need to make smart choices for the future.
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EIS Tax relief is designed to encourage investment in small high risk companies. Advantages include:
The company cannot be controlled by any other company;
You may not qualify if your enterprise provides services to another business and both of the following apply:
Scheme | Investment type | Maximum annual investment for individual | Maximum Annual investment for company | Maximum Liftetime investment for company | % of investment you can claim as a tax CREDIT | Number of years investment must be held | Tax relief on Dividends? | Capital Gains Tax relief on reinvestment of any gain |
EIS | Ordinary Equity Shares without preferential rights | £1,000,000.00 | £5,000,000 | £12,000,000 | 30% | 3 years | No | Yes on 100% of investment (deferral) |
SEIS | Ordinary Equity Shares without preferential rights | £200,000 | £250,000 | £250,000 | 50% | 3 years | No | Yes on 50% of investment, capped at £50,000 (exemption) |
VCT | Ordinary Equity Shares without preferential rights | £200,000 | £5,000,000 or 15% of the fund | £12,000,000 | 30% | 5 years | Yes | N/A |
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