Maximize Your Tax Efficiency with SEIS and EIS Relief
Looking for highly tax-efficient ways to invest in smaller companies? SEIS and EIS relief are the answer. These schemes offer substantial tax benefits, making them a compelling choice for savvy investors. According to HMRC statistics, EIS share issues amount to approximately £1.5 billion annually (£160 million for SEIS).
The Enterprise Investment Scheme (EIS) – Unlocking Opportunities
Designed to encourage investment in smaller unlisted companies, the EIS provides an attractive tax-efficient investment avenue. By offering tax relief on new shares, it empowers small companies to raise much-needed finance.
Here’s what you gain with EIS:
- Invest up to £1,000,000 per tax year
- Receive a generous 30% income tax relief
- Enjoy a tax-free exit after 3 years
SEIS – The Seed of Generous Benefits
Introduced in April 2012, the Seed Enterprise Investment Scheme (SEIS) takes the advantages of the EIS to the next level, offering even more generous incentives for investors. It primarily focuses on encouraging seed investment in early-stage companies, nurturing innovation and growth.
Here’s what SEIS brings to the table:
- Invest up to £100,000 per tax year (including company Directors)
- Receive an impressive 50% tax relief
- Benefit from Capital Gains Tax (CGT) exemption for any gains on SEIS shares
- Enjoy a tax-free exit after 3 years
Embrace Tax-Efficient Investing Today!
Don’t miss out on these remarkable tax-saving opportunities. SEIS and EIS relief provide you with unparalleled advantages for investing in promising smaller companies. Whether you’re a seasoned investor or exploring new investment avenues, SEIS and EIS are your gateway to maximizing tax efficiency and potential returns.
Unlock the Power of SEIS and EIS Relief for Your Investment Portfolio!
Discover how SEIS and EIS can transform your investment strategy and open doors to exciting opportunities. Embrace tax-efficient investing and propel your financial future. Get in touch with us today to explore the world of SEIS and EIS relief.
Examples
Comparison: Shares sold at a profit
Below is an example comparison of EIS, SEIS and no relief, to illustrate the tax savings – with shares sold at a profit.
EIS
- Cost Of Shares = £30,000
- Income tax relief = £9,000
- Capital gains tax relief (on sale of other assets) = n/a
- Net cost of shares = £21,000
- Sale proceeds (after at least 3 years) = £100,000
- Capital gains tax on sale = n/a
SEIS
- Cost Of Shares = £30,000
- Income tax relief = £15,000
- Capital gains tax relief (on sale of other assets) = £4,200
- Net cost of shares = £10,800
- Sale proceeds (after at least 3 years) = £100,000
- Capital gains tax on sale = n/a
No Relief
- Cost Of Shares = £30,000
- Income tax relief = n/a
- Capital gains tax relief (on sale of other assets) = n/a
- Net cost of shares = £30,000
- Sale proceeds (after at least 3 years) = £100,000
- Capital gains tax on sale = £14,000
Comparison: Complete Loss
Below is an example comparison of EIS, SEIS and no relief, to illustrate the tax savings – with a complete loss.
EIS
- Cost Of Shares = £30,000
- Income tax relief = £9,000
- Capital gains tax relief (on sale of other assets) = n/a
- Net cost of shares = £21,000
- Proceeds = Nil
- Income tax relief on loss = £9,450
SEIS
- Cost Of Shares = £30,000
- Income tax relief = £15,000
- Capital gains tax relief (on sale of other assets) = £4,200
- Net cost of shares = £10,800
- Proceeds = Nil
- Income tax relief on loss = £6,750
No Relief
- Cost Of Shares = £30,000
- Income tax relief = n/a
- Capital gains tax relief (on sale of other assets) = n/a
- Net cost of shares = £30,000
- Proceeds = Nil
- Income tax relief on loss = £13,500
* Income tax relief on loss may be restricted (non SEIS/EIS shares only)
Looking for specific EIS or SEIS advice or help?
Why not contact one of our specialist tax advisors.
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