The following Tax guidance note provides comprehensive and up to date legal information covering:
Various tax incentives are available to individuals investing in unlisted shares and securities such as shares admitted to trading on AIM. AIM is one of the markets owned and operated by the London Stock Exchange (LSE) and is aimed at small, mid-cap and growing companies.
Although shares and securities traded on AIM are colloquially referred to as 'listed on AIM', they are in fact not listed, but rather admitted to trading on AIM. If a company has shares or securities admitted to trading on AIM and it has no other shares or securities that are listed on a recognised stock exchange, the company is an unquoted company.
This Practice Note contains a table outlining the key tax incentives available to individuals who invest in unlisted higher-risk companies and a second table outlining the tax incentives available to individuals who invest indirectly in such companies through a venture capital trust.
For information on the tax incentives available to companies, see Practice Note: Tax incentives for companies investing in AIM companies.
The policy behind the tax reliefs available to investors in unlisted shares and securities is to encourage investment in smaller, higher-risk trading companies. This explains why some of the tax reliefs, such as enterprise investment (EIS) relief, seed enterprise investment (SEIS) relief and venture capital trust (VCT) relief require:
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