UK Draft Finance Bill 2013 Published
- On December 12, 2012
- By admin-nz
December the 11st was the moment the Draft Finance Bill 2012 was published.
A consultation was previously carried out earlier in this year in respect of the proposal to cap the amount of income tax relief tax payers could receive. The cap proposed was due to be applicable for claims of relief for the 2013/14 tax year and restricted the amount of income tax losses for which relief could be obtained in any tax year to either 50k or 25% of earnings, whichever is the greater.
Tax reliefs for losses arising on EIS qualifying shares relievable against income on making a claim under s131 ITA 2007 were included in the reliefs that were proposed to be capped.
However, The Finance Bill published today brings share loss relief within the cap for losses arising after April 5th 2013, but provides a give out for such shares either Seed EIS or EIS income tax relief affected. In such cases, the full loss on such shares can be claimed against income if the investor in question claims.A restriction on this loss relief could have led to a reduction in the capital that investors would provide to smaller, riskier companies which would otherwise struggle to raise finance.
We are therefore pleased to announce that due to the revision of the original consultation that Seed EIS and EIS investments can continue to qualify for share loss relief.
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