Investor Relief (BADR, SEIS, EIS etc)

There are multiple investor reliefs and we can advise in all of them:

EIS/SEIS/VCT

This is probably one of the most important tax reliefs to ever be introduced into the UK. A collection of three similar reliefs, Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust Scheme (VCT). They all provide the investor with money back on their investment through their tax returns of between 30-50%, and no tax on the sale of the shares if held for the qualifying period. They also provide multiple other tax reliefs if the conditions are met. Because the reliefs are very generous, the rules are complex and strict and it is extremely important to be very careful with the reliefs to not cause the terms to be breached. However, their importance in the start up eco system is profound.

• Advance Assurance for EIS/SEIS/VCT. To assist companies HMRC offers an advance assurance service to enable you to confirm your eligibility and give investors the confidence to invest.
• We can advise and assist foreign companies with how to access EIS/SEIS/VCT, without major restructuring. Contrary to popular believe you do not need to be a UK Headquartered company to claim it.

BADR

Business Asset Disposal Relief (formerly Entrepreneurs relief) is less generous than it was and also has strict conditions, but does provide for a 10% tax rate for capital gains for up to £1m in a person lifetime.

IR

Investment Relief is a far lesser known relief, but very useful where BADR or EIS/SEIS/VCT may not apply. It allows a 10% rate of tax on capital gains on the sale of shares held for 3 years when invested in an unquoted company to up to £10m of gain.

BIR

Business Investment Relief is a relief available to people who are subject to the remittance basis for tax, and wish to bring money into the UK and invest it into their own, or someone else company. A highly useful relief in these circumstances provided the conditions are met.