Tax issues for investors

Produced by Tolley in association with Anne Fairpo
Corporation Tax
Guidance

Tax issues for investors

Produced by Tolley in association with Anne Fairpo
Corporation Tax
Guidance
imgtext

Investors acquiring shares on flotation, where the company is listed on a market such as AIM so that the shares are not at present regarded by HMRC as quoted shares, may be able to claim certain reliefs including:

  1. the Enterprise Investment Scheme (EIS)

  2. venture capital relief (VCR)

  3. interest relief

  4. business asset disposal relief (previously known as entrepreneurs’ relief)

VCM13090

Investment in shares listed on the full market of the London Stock Exchange and other similar recognised stock exchanges, where the shares are regarded as quoted for tax purposes, is not generally eligible for any relief.

EIS

EIS relief can be claimed on an investment in unquoted shares, giving:

  1. income tax relief of 30% of the amount invested

  2. capital gains deferral on the disposal of an asset where the gain on disposal is matched by an EIS investment. The deferred gain becomes chargeable when the EIS shares are disposed of and the gain deferred can include a gain on the disposal of other EIS shares, so that a gain can be

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Anne Fairpo
Anne Fairpo linkedinicon twittericon

Barrister


With effect from 1 June 2021, Anne Fairpo is a judge of the First-tier Tribunal sitting in the Tax Chamber. She was previously a fee-paid judge in the same Chamber. Her contributions to LexisPSL Tax and TolleyGuidance were written before her full-time appointment and are her personal view as she is not authorised to write on behalf of the Tribunals Service or the judiciary. Until April 2021, Anne was a tenant at Temple Tax Chambers. She was called to the bar in 2009 after 15 years as a solicitor. Anne’s experience and expertise covers UK and international corporate tax planning and disputes, having acted for a range of clients from small owner-managed businesses to listed multinationals, as well as having advised on intellectual property taxation and UK-US cross-border tax planning, with regard to both direct and indirect tax matters

Powered by Tolley+
  • 23 Nov 2022 17:40

Popular Articles

Incentives, awards and prizes

Incentives, awards and prizesIntroduction ― incentives, awards and prizesEmployers may use a variety of methods to reward and encourage employees in their work. These are commonly known as incentives, awards or prizes. For the purposes of this note, the term ‘award’ will be used to cover all

14 Jul 2020 11:57 | Produced by Tolley Read more Read more

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more Read more