01932 830 664

DocSafe



forgot password
×

Accounts Online

×

DocSafe



forgot password
×

Accounts Online

×

 Accounting News & Insights

Tax efficient ways to bring investment into your growing business

19th July 2012

In the current economic climate, offering a tax efficient option may make the difference between securing a potential investment and not.

Business Structure

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:

  • Income tax relief at 30% of the cost of the shares up to a maximum of £500,000 in one tax year.
  • Shares qualifying for income tax relief are free from Capital Gains Tax on disposal.
  • Capital gains tax deferral relief.  Where the proceeds of any gain are invested in qualifying EIS shares within certain time limits the payment of tax is deferred until the EIS shares are disposed of.

Click here to read the full article


Accounting News & Insights

CommentsComment

Tax efficient ways to bring investment into your growing business

Your comments will be sent for approval prior to upload.


×