Why should I invest in EIS?
Ability to defer capital gains made elsewhere, by investing these in an EIS. Tax-free growth – no Capital Gains Tax liability if your investment does well. Loss relief – if an EIS investment does not work out, it’s possible to offset losses against income or capital gains tax.
Does EIS still exist?
The Enterprise Investment Scheme (EIS) is a UK government scheme that helps younger, higher-risk businesses raise finance by offering generous tax reliefs to investors. The scheme has been around since 1994, so is a well-established part of the UK tax landscape for investors.
How do EIS funds work?
SyndicateRoom’s EIS funds
It works by tracking the performance data of over 1,000 active angel investors. It then selects and co-invests with some of the best-performing investors, or super angels, with the aim of replicating their collective success.
You normally pay no CGT when realising EIS shares, if you have claimed income tax relief on them and the companies still qualify.
Do EIS pay dividends?
EIS offers the potential for a larger, but longer-term return on investment, but will not pay regular dividends. It’s high investment allowance means that it can be a useful facility for retirement planning, particularly when compared to the UK’s meagre pension allowance.
Can a company invest in EIS?
Can companies invest into EIS opportunities? Companies are able to invest into EIS eligible companies, but the reliefs are only available to individuals. This means that anyone wishing to claim the tax reliefs offered through EIS opportunities must invest as an individual investor rather than through a company.
Are EIS a good investment?
A potential win for start-ups and investors. … But EIS isn’t just potentially good for the investor. It’s been pivotal in ensuring start-ups in the UK can reach their potential. Under EIS, small businesses can raise up to £5million each year, and a maximum of £12million in the company’s lifetime.
How do I claim loss relief on EIS?
Using a self-assessment form
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. Loss relief claimed through self-assessment may reduce the amount of tax that an individual needs to pay for the relevant tax year.
EIS investments need to be held for 3 years for the tax reliefs to be retained.