soliop.blogg.se - Eis stock

The company must not be listed or have any intention of becoming listed at the time of the investment.

Entry into the scheme is subject to a decision and audit made by an appointed tax officer.

The company must not be in specific industries such as coal and steel production, farming, leasing, financial services and property development.

All capital employed must be actively engaged in the company within 24 months.

The company may have no more than 250 full-time equivalent employees.

The company must not have assets greater than £15 million.

The rules for qualifying are complicated for example, the following are some of the qualifications that must be met: The company

Shares do not form part of the estate for inheritance tax purposes, provided the investments have been held for at least two years at time of death and the company qualifies for business property relief (BPR).

Tax relief from investment losses – if EIS shares are disposed of at any time at a loss, such loss can be set against the investor's capital gains or income in the year of disposal, potentially limiting a total loss to 38.5% of an investor's capital.

No CGT to pay on any gains made when the investment is realised after three years (five years for investments made before 6 April 2000), provided the EIS initial income tax relief was given and not withdrawn on those shares.

Where gains arise on the EIS investment, taper relief is available.

It is available to individuals and trustees.

This relief is limited to the amount being invested into the EIS and can be claimed by investors whose interest in the company does not exceed 30%. Capital gains tax (CGT) deferral – an investor can defer capital gains realised on a different asset, where disposal of that asset was less than 12 months before the EIS investment or less than 36 months after it.The maximum subscription is currently £1,000,000 per investor per year (this rises to £2,000,000 per year if the companies are deemed 'Knowledge Intensive'), yielding a potential reduction in tax liability of £300,000 per annum (assuming the investor has sufficient income tax liability). 30% up front income tax relief, which can be carried back to the previous tax year.A brief summary of the tax benefits is as follows: They are conditional upon the company receiving investment being a qualifying company under the scheme. The EIS offers several different kinds of tax relief, available both to direct investors and investors through a managed EIS fund or portfolio service. The tax reliefs available under the EIS are intended to offer investors some incentive to counterweigh those risks.

Investment in companies that are not listed on a stock exchange often carries a high risk of loss of capital, and low market liquidity means that it may be difficult or time consuming to sell or realise the investment.