Enterprise Investment Scheme
Give small companies a financial boost and save on both income and gains
When you invest into young, small firms that qualify for the Enterprise Investment Scheme (EIS) the taxman rewards you with very significant savings.
The big reward, of course, is that one of these firms might be a rising star. But that’s far from certain. In the meantime you could certainly enjoy some other very valuable rewards:
- Save up to 30% on your income tax bill – up to £300,000 per year
- Enjoy tax-free growth
- Defer capital gains liability from other investments – potentially indefinitely
- Offset any future losses against your income, so you save income tax
- Pass on your investment free of IHT
The top 10% of taxpayers are projected to be liable for 58.5% of total income tax (2016/17). This burden is set to become even greater: more tax to pay, fewer tax shelters available.
EIS investments, for the time being, are a rare exception – and investors have not been slow to take advantage.
Since the EIS was introduced in 1993 more than 24,600 companies have received over £14 billion. In 2014/15 alone, investors raised £1.66 billion to support 3,130 early-stage companies – the highest investment level ever.
These investors could have collectively received up to £498.6 million in initial income tax relief alone. Tax rules can change and tax benefits depend on cirumstances.
There is a limit to the number of EIS offers available and for all the reasons just given we expect demand to be very high. So if this opportunity appeals to you delay could be unwise.
Investing in an EIS is straightforward. Simply look at the available offers, download your chosen EIS application pack, complete and return it to Wealth Club with your cheque payable to the relevant provider. Please ensure you have also completed the Investor Declaration on the last page of the application pack. Before you invest you should also ensure you have read and understood the Risks and Commitments.
We will check and acknowledge your application and forward it to the relevant provider. In due course the provider will send you the EIS3 form which you will need to claim your income tax rebate. You will also receive a share certificate which could take several months.