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 Enterprise Investment Scheme
The Enterprise Investment Scheme is a UK tax incentive scheme designed to encourage investors to invest in unquoted companies. The benefits are:Income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.CGT relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.Tax relief on losses: if your EIS investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.Rollover relief: if you use the proceeds from selling shares in Company A to invest in Company B, and Company B is an EIS-qualifying company, you won"t have to pay tax on the gains made from Company A until you subsequently dispose of Company B"s shares. i.e. your gain is rolled over.The maximum amount you can invest in an EIS is £150,000 annually. Similar tax breaks are available from investments in Venture Capital Trusts (VCTs). Essentially, these are investment trusts that invest in small unquoted companies. As with EIS investments, there are lots of rules which, if broken, will invalidate the tax advantages.The risks associated with EIS companies are high and you should take professional advice before committing funds to them.
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Enterprise Investment Scheme - The Enterprise Investment Scheme is a UK tax incentive scheme designed to encourage investors to invest in unquoted companies. The benefits are:Income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.CGT relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.Tax relief on losses: if your EIS investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.Rollover relief: if you use the proceeds from selling shares in Company A to invest in Company B, and Company B is an EIS-qualifying company, you won"t have to pay tax on the gains made from Company A until you subsequently dispose of Company B"s shares. i.e. your gain is rolled over.The maximum amount you can invest in an EIS is £150,000 annually. Similar tax breaks are available from investments in Venture Capital Trusts (VCTs). Essentially, these are investment trusts that invest in small unquoted companies. As with EIS investments, there are lots of rules which, if broken, will invalidate the tax advantages.The risks associated with EIS companies are high and you should take professional advice before committing funds to them.
Enterprise Investment Scheme : the enterprise investment scheme is a uk tax incentive scheme designed to encourage investors to invest in unquoted companies. the benefits are:income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.cgt relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.tax relief on losses: if your eis investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.rollover relief: if you use the proceeds from selling shares in company a to invest in company b, and company b is an eis-qualifying company, you won"t have to pay tax on the gains made from company a until you subsequently dispose of company b"s shares. i.e. your gain is rolled over.the maximum amount you can invest in an eis is £150,000 annually. similar tax breaks are available from investments in venture capital trusts (vcts). essentially, these are investment trusts that invest in small unquoted companies. as with eis investments, there are lots of rules which, if broken, will invalidate the tax advantages.the risks associated with eis companies are high and you should take professional advice before committing funds to them.
