March 2017 – Consider other tax efficient investments

2 March 2017

If you are looking for investment opportunities, have you considered the Enterprise Investment Scheme (EIS)?

These investments in certain qualifying companies allow you to set off 30% of the amount invested against your tax bill as well as capital gains tax (CGT) deferral.

An even more generous tax break is available for investment in a qualifying Seed EIS company where income tax relief at 50 per cent is available.

In addition, it is possible to obtain relief against your 2016/17 capital gains. Both EIS and Seed EIS also provide a CGT exemption when the shares themselves are sold after 3 years.

Note however that qualifying EIS and Seed EIS companies tend to be risky investments so professional advice should be taken. A 30% income tax break is also available by investing in a Venture Capital Trust.