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Enterprise Investment Scheme
The Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance and investors can obtain generous income tax and capital gains tax breaks for their investment. The table below sets out the income and capital gains tax reliefs.
Venture capital trusts
VCTs are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. They can receive income tax relief of 30 per cent of the amount invested, up to £200,000. Dividends paid out of VCTs are tax-free and capital gains are also tax-free.
Seed Enterprise Investment Scheme
A junior version of EIS known as Seed Enterprise Investment Scheme (SEIS) has been introduced - please see table below for differences.
|Annual investment limit||£200,000||£2 million
|Income tax relief for subscribers||30%||30%||50%|
|Clawback if held for less than||5 years||3 years||3 years|
|Tax free dividends?||Yes||No||No|
|Tax free capital gains?||Yes||Yes - after 3 years||Yes - after 3 years|
|Tax relief for losses?||No||Yes - after 3 years||Yes - after 3 years|
|IHT business property relief?||No||Yes||Yes|
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
Registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants auditregister.org.uk 8011438
61 Friar Gate Derby DE1 1DJ