Tax Efficient Investments

TAX EFFICIENT INVESTMENTS

Tax efficient investments offer various tax benefits to qualifying investments whilst simultaneously encouraging investment into the UK entrepreneurial business scene and are made through government-backed schemes such as SEIS, EIS & VCTs. The benefits of these types of investments vary from income tax relief to capital gains relief, through to loss relief and inheritance tax relief

We offer a range of tax efficient investments on GrowthInvest. Further information on each type is included on the dedicated sections below.

Summary

The Seed Enterprise Investment Scheme (SEIS) was introduced in 2012, and is similar to the EIS, though to qualify the companies must be smaller and at an earlier stage than for EIS. As these are therefore typically riskier investments, there are more substantial reliefs available.

Tax Benefits

The benefits of investing into an SEIS qualifying company include:


  • 50% Initial Income Tax Relief

    Actual net cash outlay 50 pence in the £1


  • CGT Freedom

    No Capital Gains Tax to pay


  • CGT Reinvestment Relief

    Potential exemption of 50% of an existing CGT bill


  • Loss Relief

    Maximum exposure of 27.5 pence in the £1 for a 45% tax payer


  • Inheritance Tax Relief

    Potential 40 pence in the £1 saving

See All Tax Benefits

Qualifying Criteria

There are several criteria that businesses will need to meet in order to qualify as an SEIS business, and some trades are also excluded. For example the business must:
  • Be a UK registered company
  • Have fewer than 25 employees.
  • Assets less than £200,000
  • The business cannot be more than two years old.
  • Must be an unquoted company (Not listed on any major stock exchange)

  • No previous other risk capital scheme investments.
  • No previous SEIS, EIS or VCT investments made.
  • Possible exemption of 50% of an existing Capital Gains Tax bill.
  • Up to 100% IHT relief (After two years of holding the investment)

Open Opportunities

We have a range of investment opportunities on the platform to help you build a diversified portfolio

View All Current Opportunities

Further Information

Further information on SEIS can be found on the HMRC website, as well as on EISA the trade organisation for the industry.

Summary

The Enterprise Investment Scheme (EIS) was introduced by the government in 1994 to promote investment into smaller, and therefore typically higher risk, companies. To encourage such investment, there is a range of benefits available to qualifying investors.

Tax Benefits

The benefits of investing into an EIS qualifying company include:


  • 30% Initial Income Tax Relief

    Actual net cash outlay 70 pence in the £1


  • CGT Freedom

    No Capital Gains Tax to pay


  • CGT Deferral Relief

    Potential unlimited and indefinite deferral of an existing CGT bill


  • Loss Relief

    Aximum exposure 38.5 pence in the £1 for a 45% income tax payer


  • Inheritance Tax Relief

    Potential 40 pence in the £1 saving

See All Tax Benefits

Qualifying Criteria

There are several criteria that businesses will need to meet in order to qualify as an EIS business, and some trades are also excluded. For example the business must:
  • Be a UK registered company
  • It must have less than 250 full time employees (499 for knowledge intensive companies)

  • Must be an unquoted company (Not listed on any major stock exchange).
  • Gross assets must not exceed £15 million prior to share issue or £16 million straight after a share issue.

Open Opportunities

We have a range of investment opportunities on the platform to help you build a diversified portfolio

View All Current Opportunities

Further Information

Further information on EIS can be found on the HMRC website, as well as on EISA the trade organisation for the industry.

Summary

A Venture Capital Trust (VCT) is a publicly listed company. The company, run by a fund manager, invests in a number of small unquoted companies. Therefore an investor into a VCT is investing in the fund manager’s selected portfolio of earlier stage UK companies, and thereby helps them to grow. To encourage investment of this sort, the government provides a number of tax benefits to qualifying UK investors.

Tax Benefits

The benefits of investing into a VCT qualifying company include:


  • 30% Initial Income Tax Relief

    Actual net cash outlay 70 pence in the £1


  • CGT Freedom

    No Capital Gains Tax to pay


  • The Tax Free Dividend

    Dividends from your VCT shares are not subject to income tax

See All Tax Benefits

Qualifying Criteria

There are several criteria that businesses will need to meet in order to qualify for VCTs, some trades are also excluded. For example the business must:
  • A company must be unquoted (companies whose shares are listed on the AIM market are considered unquoted)
  • The company must have fewer than 250 full time employees (or 500 for a knowledge-intensive company)

  • Gross assets must be less than £15 million prior to investment, and £16 million straight afterwards.
  • It must be a permanent establishment in the UK

Open Opportunities

We have a range of investment opportunities on the platform to help you build a diversified portfolio

View Current VCT Opportunities

Further Information

Further information on VCTs can be found on the HMRC website, as well as on the AIC website, the trade organisation for the industry.

RISK

EIS, SEIS & VCT qualifying businesses are high risk because they are early stage businesses. Source: https://www.gov.uk/topic/business-tax/investment-schemes
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