Tax issues for investors

Produced by Tolley in association with Anne Fairpo

Corporation Tax

Guidance

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:

•
the Enterprise Investment Scheme (EIS)
•
venture capital trusts relief (VCT)
•
interest relief
•
business asset disposal 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:

•
income tax relief of 30% of the amount invested
•
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 deferred indefinitely by

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+™

TAKE A FREE TRIAL NOW

Anne Fairpo

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

Popular Articles

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Real estate investment trusts (REITs)

Real estate investment trusts (REITs)Introduction to REITsA real estate investment trust (REIT) is in fact not a trust at all, it is a company which qualifies for special tax treatment under CTA 2010, Part 12. REITs are similar in many ways to collective fund vehicles (such as unit trusts) in that

14 Jul 2020 13:04 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Tax issues for investors

Tax issues for investors