Enterprise Investment Schemes (EIS) - the 5 tax benefits

How would you like to . . .

·         Reclaim income tax you have paid to the taxman

·         Reduce the level of Inheritance Tax payable by your beneficiaries

·         Defer the payment of Capital Gains Tax

ENTERPRISE INVESTMENT SCHEMES (EIS) – the FIVE tax benefits

·         30% income tax relief on investments up to £1m per tax year

·         Must hold investment for minimum of 3 years

·         A gain arising on disposal of EIS shares is fully exempt from Capital Gains Tax

·         Must hold investment for minimum of 3 years prior to disposal for CGT exemption

·         A loss on disposal of EIS shares can be offset against income or capital gains

·         The loss is reduced by any EIS income tax relief claimed at the time of investment

·         Payment of tax on a capital gain made on the sale of any asset can be deferred if that gain is invested in an EIS

·         The gain must be invested in an EIS one year before, or three years after it arose

·         Providing the EIS shares qualify for Business Property Relief…

·         And have been held for a minimum of 2 years…

·         The value of those shares will be free from Inheritance Tax on death

There have been a number of changes to EIS investments recently, and they have increased in popularity particularly as pension tax relief has been reduced.

Ward Williams Financial Services Ltd have always given consideration to EIS investments, as part of an overall Financial Plan, and one of our Advisers would be happy to discuss your options.

EIS investments are considered to be higher risk investments, and it is essential to take financial advice in order to:

·         Ensure sufficient accessible emergency funds remain after investment

·         Restrict the proportion of your overall capital invested in EIS

·         Ensure the investment reflects your risk tolerance and capacity for loss

·         Diversify your EIS investment across a range of companies and sectors

·         Ensure you are focusing on investment fundamentals…not just the attractive tax reliefs

www.wardwilliamsfs.co.uk, wwfs@wardwilliams.co.uk

Ward Williams Financial Services Ltd. Registered in England No. 04359977.  Ward Williams Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.