innvotec

Tax advantages

There are several tax benefits accruing to a UK taxpayer, by investing in an EIS Fund.

Providing an underlying investment is made in an EIS qualifying company and held for at least three years, an individual is entitled to;

• 30% income tax relief on investments made in qualifying companies, up to £500,000 in a tax year
• up to 35% loss relief against full sum invested on any holding that fails
• 100% capital gains tax deferral whilst the EIS investment is held
• 100% capital gains tax exemption on disposal of EIS Fund assets
• 100% inheritance tax relief (via business property relief)as underlying investments are made and held for two years

A video on the Tax Benefits of investing under EIS.