EIS & SEIS
Recent measures for business
A number of changes affecting businesses have been put forward over the last few years, with the aim of stimulating growth, encouraging investment and reducing the burden on businesses. Some of the key changes, many of which are referenced in this guide, are outlined below.
The relatively new Seed Enterprise Investment Scheme offers income tax relief of 50% for individuals who invest in shares in qualifying companies, with an annual investment limit for individuals of £100,000 and a cumulative investment limit for companies of £150,000. In addition, the scheme offers a CGT 'holiday' for investments made.
This will allow for a CGT relief on gains realised on disposal of an asset in 2012/13 and invested through SEIS in the same year.
A gain on the disposal of SEIS shares will be exempt from CGT as long as:
- the shares obtained income tax relief, which has not been withdrawn, and
- the shares are held for a least three years
The employee limit for both EIS and VCT purposes is now fewer than 250 employees (previously fewer than 50), while the gross asset limit has risen to £15m before the investment and £16m afterwards. The maximum annual amount that can be invested in a company is £200,000 for a VCT and the maximum annual amount that an individual can invest under the EIS scheme is £1m.
For more information please contact Iain Sim or Gill Groom.