Looking for a tax rebate of up to 50% of your investment in a new business?
Both the EIS& SEIS schemes are incredibly generous tax schemes that enable investors to reclaim up to 50% of their initial investment on purchasing a business.
The Seed Enterprise Investment Scheme (SEIS) was introduced in April 2012 by HMRC to help small, early-stage companies raise funds through individual investors by providing a series of tax reliefs on investments made into qualifying companies.
Investors may claim relief on up to £100,000 invested through the scheme per annum and can receive reliefs covering 78% of their investment or more.
The EIS is similar but for larger businesses. You can take advantage of the following reliefs on up to £1m of investment made into eligible companies per year:
Income tax relief of 30% of your investment. This can be used in the year of investment or carried back one-year prior
Capital Gains exemption on profits earned on shares held for a minimum of three years
Loss relief, should the company you’ve invested in fail, equivalent to your tax bracket multiplied by your ‘at risk capital’ (the total loss on the shares once income tax relief has been accounted for)
Capital Gains deferral on gains realised on the disposal of any asset which is reinvested in an EIS eligible company
Inheritance Tax exemption on shares held for a minimum of two years.
For details of both the EIS and SEIS call us now on 0141 334 8068.