Use Enterprise Investment Schemes (EIS) to reduce tax obligations
For businesses that qualify, there are certain tax reliefs available from Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) that can considerably reduce overall tax liabilities and are a major factor for corporate tax planning. The EIS and the SEIS are both government schemes that allow certain reliefs for investors who subscribe for qualifying shares in qualifying industries. The SEIS is intended to complement the EIS, but relates specifically to the subscription of shares in early stage companies.
We can also advise you on ways to stay in-line with requirements to save on tax, including:
- Investment and deferrals
- Company shareholding
- Disposal of shares
- Deferring capital gains on any other assets
- Reinvestment and relevant timescales (including reinvesting into a EIS company)
- Employee and paid Directors of EIS companies (including stipulations for withdrawal of reliefs)
- Risk spreading for EIS approved investment fund or Venture Capital Trust
- SEEIS – gains shelter from CGT for gains accruing in 2013/14.
We can also advise you on:
- Subsidiaries and how they relate
- Qualifying and non-approved trading industries
- Exemption regulations
- SEEIS State Aid funding and its relation to entitlement
- Appropriate ways to source funding to maximise on investment amount.
We can offer you advice and support services for choosing and investing in the right scheme for your circumstances.