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

Employment Tax

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

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

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Tax issues for investors

Tax issues for investors