With the end of the financial year around the corner, investors are rushing to take full advantage of the UK’s generous EIS (Enterprise Investment Scheme) benefits.
To recap, under EIS, your benefits include:
- Income tax relief of 30 per cent – meaning if you invest £10k in an eligible company, you can take £3k off your income tax bill in the year you invest.
- 100% capital gains tax relief on any profits you make from an EIS investment.
- Loss relief – should you make a loss on your investment, you can offset that loss against your income tax.
- No inheritance tax to pay on EIS shares.
To be eligible for EIS reliefs, you generally must hold the shares for at least three years before selling them, and there are certain company sectors that are not eligible. You can invest a maximum of £1 million each year through EIS.
Currently we have several companies that have EIS approval, providing the generous tax breaks and benefits mentioned above.