If you have a particular project or goal in mind, you may be wondering how you’ll raise the finance you need. Have you considered the Enterprise Investment Scheme or crowdfunding?
Weighing up the benefits of each is crowdfunding investment specialists Current Capital. Could they be the financial solution you have been looking for?
The benefits of the Enterprise Investment Scheme (EIS)
The government’s Enterprise Investment Scheme (EIS) has been established to help companies gain the investment they need from qualifying investors.
It’s particularly beneficial for smaller trading companies that have a higher risk, as investors will receive a variety of tax reliefs. The EIS provides the following benefits:
• A deferral of EIS Capital Gains Tax for the life of the investment on the amount subscribed.
• 30 per cent EIS income tax relief on the amount subscribed, which can be up to a maximum investment of £1 million in the 2017/18 tax year and/or £1 million which can be carried back to the 2016/17 tax year.
• 100 per cent inheritance tax relief after two years, so long as the investment is held at the time of death.
To put the above into context, if a UK taxpayer was to invest £100,000 in an EIS qualified company, HMRC would grant them a £30,000 tax rebate, assuming their income tax liability has exceeded £30,000 in the current or previous tax year.
Originally posted 2017-10-14 19:19:32. Republished by Blog Post Promoter