The Tax Benefits Jonathan Bennion-Pedley
Business
The Tax Benefits for Investors in an Enterprise Investment Scheme Enterprise Investment Schemes are designed to help newer businesses that might be seen as higher risk to attract investors. This is achieved by the government offering attractive tax reliefs to investors in businesses under the umbrella of EIS.
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Tax Reliefs
Investment Limits
There are several tax reliefs that EIS investors can take ad-
There are limits on how much capital an investor can place
vantage of. These include income tax relief on up to 30% of
in EIS investments and be eligible for tax reliefs. However,
the investment, an exemption on capital gains tax on profits
this limit is reasonably high at £1 million per person per
when shares are held for at least three years, capital gains
year, or £2 million per person per year if at least £1 million
tax deferral if profits are reinvested in another EIS, exemption
is invested in knowledge-intensive companies.
on inheritance tax for a two-year investment, and loss relief. Loss relief is calculated by multiplying the at-risk capital of the investor by their tax bracket if the investment company fails.
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Jonathan Bennion-Pedley
You can learn more about the EIS on offer through Investment Owl by visiting the blog of Jonathan Bennion-Pedley.