The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The enterprise investment scheme (EIS) is a scheme that encourages individuals to invest money in shares issued by qualifying unquoted companies with a permanent establishment in the UK.
A subscription for eligible shares of a qualifying EIS company is a tax efficient investment for the individual. He can benefit from the following tax reliefs:
income tax relief for the investor of up to 30% of the amount invested (see the Enterprise investment scheme tax relief guidance note)
disposals of EIS shares after three years may be free from CGT (see the Venture capital scheme shares guidance note)
capital gains deferral relief allows investors disposing of any asset to defer gains against subscriptions in EIS shares (see the Enterprise investment scheme deferral relief guidance note)
losses on EIS shares may be offset against taxable income (see the Losses on shares set against income guidance note)
EIS investments should qualify for IHT business property relief after two years’ ownership (see the BPR overview guidance note)
This guidance note discusses the occasions that may result in the income tax relief being withdrawn or reduced. For the mechanism of calculating the withdrawal or reduction of relief, see the How to calculate the clawback of relief guidance note.
Broadly, income tax relief is withdrawn if within three years of subscription (or three years from the commencement of the trade, if later):
the shares are gifted or sold to someone other than the spouse / civil partner
the investor is granted an option binding the
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Arguably, the most important exemption from IHT is the married couple / civil partner exemption.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’). The exemption applies to inter-spouse
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
IntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash dividends and Non-cash dividends
Personal representatives are responsible for finalising the deceased’s tax affairs. They must file outstanding tax returns and claim any repayments due.For many estates where the deceased’s tax was deducted under PAYE on pensions or employment, a refund is likely to arise because the deceased is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.