The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The enterprise investment scheme (EIS) offers substantial tax incentives to investors in companies which qualify.
In summary, tax reliefs under EIS are as follows:
income tax relief for the investor of up to 30% of the amount invested
disposals of EIS shares after three years may be free from capital gains tax
capital gains tax deferral relief allows investors disposing of any asset to defer gains against subscriptions in EIS shares
losses on EIS shares may be offset against taxable income
EIS investments should qualify for IHT business property relief after two years’ ownership
The tax incentives for EIS investments are intended to encourage investment in high-risk companies. Therefore, there are stringent conditions associated with EIS reliefs and tax advice on EIS should be undertaken and supervised by a suitable experienced practitioner.
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