19th July 2012
In the current economic climate, offering a tax efficient option may make the difference between securing a potential investment and not.
Before considering the potential tax incentives available to investors, it is worth taking the time to consider the structure of the business. The main tax incentives available to investors are only available to companies, so if the business is not already incorporated, this may be worth considering.
Enterprise Investment Scheme
The Enterprise Investment Scheme (EIS) is designed to help smaller high-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies. Subject to specific conditions being met, individuals are able to obtain income tax and capital gains tax reliefs on investments in newly issued shares in unquoted companies. The main reliefs are: