This factsheet summarises and compares the conditions as well as the tax benefits to the investor of the following reliefs:
- Seed Enterprise Investment Scheme – (SEIS)
- Enterprise Investment Scheme – (EIS)
- Entrepreneurs Relief – (ER)
- Investors Relief – (IR) – Introduced by the 2016 Budget
The table below summaries the main conditions and tax benefits of each.
| SEIS | EIS | ER | IR | |
|
Maximum investment in a tax year |
100,000 |
1,000,000 |
No Limit |
No Limit |
| Income tax relief available | 50% | 30% | Nil | Nil |
| CGT holdover relief on amount subscribed | Up to 50% of investment | No/Yes Limit | Nil | Nil |
| CGT rate on disposal | 0% | 0% | 10% (A) | 10% (A) |
| Income Tax/CGT loss relief | Y | Y | N | N |
| Ownership | ≤30% | ≤30% | ≥5% (B) | No Limit |
| Directorship | Y (C) | Y (D) | Y (E) | N |
| Minimum holding period | 3 Years | 3 Years | 12 Months | 3 Years |
Notes:
(A) Only available on the first £10m of the gain (Lifetime limit)
(B) Can hold <5% if shares acquired under EMI share option scheme and all other conditions met
(C) Directorship permitted in certain circumstances. General employment is not permitted within 3 years of subscription
(D) Must not have been previously employed or connected with the company in which investment is made but can be appointed a formal Director after initial subscription
(E) Must be an employee or director or other office holder of company to be eligible for relief
For a more detailed summary of the key conditions and tax benefits for each of the above please request the corresponding factsheets:
- Seed Enterprise Investment Scheme (SEIS)
- Enterprise Investment Scheme (EIS)
- Entrepreneurs Relief (ER)
- Investors Relief (IR)
Next Steps
For further information or to speak with a Partner, contact us at the following:
Nunn Hayward LLP
Sterling House
20, Station Road
Gerrards Cross
Buckinghamshire
SL9 8EL
Telephone: 01753 888211
Disclaimer
The information in this sheet is intended as a general guide only. As such, taxation advice must always be sought before action is taken or refrained from. Whilst prepared in good faith, no liability can attach to this firm or any member or employees as a result of the information contained in this sheet.
Further, Nunn Hayward LLP are not allowed by the FSA to provide financial advice. Nothing in this sheet contains such advice. We would strongly recommend that advice from an independent financial advisor is sought before deciding on any course of action caused by this sheet.
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