EIS TAX BENEFITS
Please note that the examples given in this section are illustrative only and assume that at all relevant times the Company qualifies for EIS relief and that the shares are issued on or after 6 April 2011. They are not, and should not be, construed as forecasts of the likely performance of the investment described in the Offer Document. Furthermore they are based on the changes to EIS relief announced in the Budget on 23 March 2011, subject to legislation and State aid approval.Benefits available to Investors from various EIS tax relief as follows:
Type of EIS Relief
- Income Tax Relief
- CGT Deferral
- Maximum Rate
- Max Investment Per Annum
- £500,000 single person
- No upper limit
How much tax can I potentially save/defer when I invest?
What are you claiming
- Investors claiming EIS Income tax relief
- Investors claiming EIS CGT deferral at 28%
- Investors claiming both EIS income tax relief and CGT deferral at 28%
- Amount invested
- Tax relief
- Initial net cost to investor
CGT deferred will become payable at the rate in force at the time when the investment is realised or ceases to qualify, Investors may therefore be able to combine the above reliefs so as to achieve initial relief of 58p in the £1.
Examples (ii) and (iii) are calculated on the assumption that an Investor would otherwise pay tax at 28% on the chargeable gain which was the highest prevailing rate after 6 April 2010.
What happens if I sell my shares after three years at a profit?
You will not have to pay any tax at all on any profits made from the sale of your shares (provided that the Company retains its EIS investment status) if you sell them after three years or if the Company is wound up and the assets distributed.