Nunn Hayward LLP Fact Sheet: Share Investment Reliefs (Updated for Budget 2016)

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

http://www.nhllp.com

  

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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