Generous enhancements to the Enterprise Investment Scheme (EIS) were announced in this year’s Budget, however they were subject to approval by the European Commission….
It has now been announced that approval has been given by the EC, which is great news for the British economy and UK business and entrepreneurship!
To recap the changes announced are as follows:
From 6 April 2011
The rate of income tax relief on qualifying investments has been increased to 30%
From 6 April 2012
The maximum individual investment will increase to £1M (from £500K in 2011/12)
The maximum amount a company can raise in the 12 months ending on the date of the relevant investment has been increased to £10M (£2M in 2011/12)
A company will qualify if it has up to 250 employees (50 for 2011/12 and earlier years)
The gross asset test for a company will increase to £15M (£7M for 2011/12 and earlier years)
If you would like advice regarding the tax implications of making investments in EIS companies, or you are a Company Director looking to raise funds for your company and require assistance in obtaining EIS approval from Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... More please contact us.
The Tax Advisory Partnership is a member firm of the Chartered Institute of Taxation (CIOT) and also the Enterprise Investment Scheme Association (EISA). We are not Financial Advisors and are not regulated by the Financial Services Authority (FSA). Where appropriate we will work with your Independent Financial Advisor or we can introduce you to an IFA we have worked with in the past who can take care of the FSA aspects. However, our focus is on ensuring that any investment strategy you may select meets with your overall financial and taxation objectives.