Have you got spare cash? Do you have a tax bill each year? If yes to both, you could get a 50% reduction on your tax bill if you invest in a business under the Seed Enterprise Investment Scheme.
Enterprise Investment Schemes (EIS) aren’t new; they’ve been around a while and are pretty tax efficient. But the new Seed Enterprise Investment Scheme (SEIS), designed to encourage investment in small businesses, kicks-ass!
Investing into qualifying SEIS shares means you can claim 50% income tax relief. For example, if you invest £20,000, you’ll get £10,000 off your income tax bill.
Capital Gains Tax:
Ordinarily when you buy shares, sell them at a later date and then make money on them, you have to pay Capital Gains Tax. When you sell SEIS shares, providing you’ve had them for more than 3 years, and claimed the income tax deduction, you won’t pay any Capital Gains Tax on the profit you make.
This is a great time for those who may have spare funds they are willing to invest and have a tax bill to pay.
If you’re considering an SEIS investment, speak to us. It’s important you get the details right in order to get the tax reduction.