Tax Tip: EIS and SEIS – Tax Savings Resulting from Cash Investments

The Enterprise Investment Scheme and Seed Enterprise Investment Scheme offer a tax efficient method for making investments.

In the first instance, a percentage of your cash investment offers an immediate deduction from your tax bill that year, or even the prior year – 30% for EIS and 50% for SEIS.

Investments are risky, so the incentives are high but the EIS/SEIS regime has further protection built into it as reliefs are available for losses on qualifying shares.

Winning investments are also exempt from capital gains tax, as long they have been held for 3 years and you have claimed the income tax relief (SEIS only).

If you have disposed of some other investments or plan to do so in the near future, you may also be able to reduce your capital gains tax on other assets using EIS/SEIS investments.

With so many ways to benefit from EIS/SEIS it’s clear that there is substantial support for these new and innovative enterprises.

Contact the Elman Wall Tax Team on 020 7600 5667 for more information.

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