64 deals £1.780 Billion

pearls of wisdom

Treated as unquoted securities

The tax benefits for unquoted securities are:

The investments qualify for business property relief:

1. 100% relief if own more than 25%

2. 50% relief if own less than 25% of the qualifying company

1. Roll-over relief to defer a gain reinvested in a qualifying company

2. Investment to be made up to 1year prior to gain and up to 3years after the original gain

3. The company can transfer to the Official List during the 3 years without disturbing the relief

A company can raise up to £1 million per annum from EIS investors

Investors get:

1. 20% tax relief on up to £100,000 per annum
2. no capital gains tax on first disposal
3. loss relief, reducing loss to 48% of cost for higher rate tax payer

Qualifying company must maintain its status for three years

Connected persons do not qualify but new directors may be eligible