How much can you invest in EIS?
You can only invest up to a maximum of £1 million into EIS qualifying companies in each tax year. Investors can also benefit from disposal relief, where you will not have to pay CGT on a gain from the disposal of EIS shares, as long as the shares have been held for at least 3 years.
What is the limit on gross assets immediately before issue of the EIS shares?
The Alternative Investment Market (AIM) is not treated as a recognised market under EIS rules. A ‘small company’. Gross assets cannot exceed £15 million (£7 million before April 2012) before the share issue, or £16 million (£8 million before April 2012) immediately after.
How much EIS relief can I claim?
The maximum amount on which relief can be claimed is £2 million, but any amount over £1 million must be for shares issued by one or more knowledge-intensive companies ( KIC ).
How many years can you carry back EIS relief?
When to claim your relief
If you invest with EIS , SEIS or SITR , you can claim relief up to 5 years after the 31 January following the tax year in which you made the investment. For VCTs , you can claim relief up to 4 years after the end of tax year of assessment in which you made the investment.
Are EIS a good investment?
EIS investment offers them a good starting point into enterprise investment and possibly a new career as a business angel. By reinvesting their tax-free lump sum through EIS, they receive a double-whammy of tax relief.
How do I claim an EIS loss relief?
If you complete a self-assessment tax return, you can claim EIS losses against either income tax or capital gains tax by completing the SA108 form (the Self-Assessment form). If you don’t already complete this online, you can request a Self-Assement form from hmrc.gov.uk.
What qualifies as an EIS investment?
not have gross assets worth more than £15 million before any shares are issued, and not more than £16 million immediately afterwards. have less than 250 full-time equivalent employees at the time the shares are issued.
How do you calculate EIS investments?
You can find individual EIS-eligible investment opportunities in places such as Growth Capital Ventures’ (GCV) co-investment platform, GrowthFunders, which provides members with access to high quality, pre-vetted investment opportunities in early-stage and high-growth businesses.
What happens if an EIS company goes bust?
– If the EIS company goes into liquidation within (generally) three years of the share issue, Income Tax relief originally given is clawed back. The amount clawed back is 30% of any value received on liquidation (up to a maximum of the relief originally given).
Who is eligible for EIS relief?
In order to qualify for EIS Tax relief, you cannot be ‘connected’ to the investee company by significant financial interest or employment. These conditions must be true for the duration of a period starting two years prior to the share issue and lasting until three years after the investment is made.
Is it compulsory to pay EIS?
All employees aged 18 to 60 are required to contribute. However, employees aged 57 and above who have no prior contributions before the age of 57 are exempted. Contribution rates are capped at insured salary of RM4000.
When can I claim EIS tax relief?
You will normally claim EIS tax relief when you complete your tax return. You will be asked some information which is included in your EIS3 certificates. These are certificates you receive from each of the companies you invested in, typically a few months after the investment.
How long do I need to hold EIS shares?
EIS investments need to be held for 3 years for the tax reliefs to be retained.
How long is tax relief?
How long does it take to get a tax rebate? Tax refunds in the UK can take up to 12 weeks to be processed by HMRC with a further 5 days to 5 weeks added to receive your money. There are a number of reasons why you may be owed a tax refund, or tax rebate, from HMRC.
What happens to EIS shares on death?
EIS shares are treated like any other shares you buy in the stock market. This means when you die they form part of your estate and can be passed on to whomever you choose. … IHT relief, however, could only be available if the shares have been held for at least two years.