EIS investment from company?

[minstrel]

Hi there,
Does anyone know where I can get a list of investments that offer EIS tax relief rom the last 3 years?, I would like to know which industries are on offer to me as potential investor.

Thanks

Essentially, any company that is formed could be set up in a way that qualifies for EIS so there are potentially hundreds.

However, you probably want to stick to the main ones that are actively marketed to investors like you. Most IFAs and brokers will have a list of the major ones. Use Google or look at a discount broker like Club Finance for a list of the main schemes.

Beware that EIS is typically a very high risk single company investment and your investment will not have the same diversity as a VCT. If you don't have a deep understanding of the company and do full due diligence it is even more of a gamble.

If you're not comfortable throwing around similar amounts of cash in a casino or spread betting account you may not have the right risk appetite.

Many advisors say EIS should not form more than 5% of your portfolio and I would only invest if I could fully utilise Income Tax Relief and CGT Deferral Relief.

The tax breaks are generous, but make sure you are confident the underlying investment has a reasonable chance of success.

[Apprenticeno1]

EIS Companies

Hi there,
Does anyone know where I can get a list of investments that offer EIS tax relief rom the last 3 years?, I would like to know which industries are on offer to me as potential investor.

Thanks

[minstrel]

Might also be worth considering Seed EIS scheme which has been discussed here and will give 50% tax relief from 12/13 tax year.

[chrisl]

Great information, thank you.

[minstrel]

Sorry maybe i should be clearer.

If I am wanting to use the EIS scheme to invest personally into a new company then i can do so and obtain personal tax relief.

But is there a better way for me to invest from my limited company into a new company that meets the criteria as you would normally do personally.

Just wanted to check before £10k is invested personally that there is not a better way to do it via my limited company.

As I see it, the main advantage of EIS investments is the 30% income tax relief you get. This is only available to an individual tax payer not a limited company investor.

So in answer to your question, NO - there is not a better way of doing it via your limited company.

Remember the relief is only available against income tax you would have otherwise had to pay. You can't make an EIS investment of £10k and get a £3k cash rebate from HMRC, you need to arrange your income so you are liable for £3k tax and then use the EIS relief to 'reverse' it back to nil.

[Emigre]

Is there such a thing?

I know you can obtain tax relief at 30% investing personally but could you invest from the business directly and would this be worthwhile?

In terms of tax efficiency ther isn't much to beat EIS if you have a few thou to throw at a start up. You don't just get the relief in Income Tax, there are reliefs on CGT too.

However, EIS has some fair high hurdles that need to be crossed by both the company and you personally. It is well set out out on the HMRC website (never thought I would say that!) so really important to take a read first. Also, it is an area that will pay to take advice on. If its not your business, how do you know they will keep compliant?

Research is good here.

[northernladuk]

My apologies,,

Maybe drop Minstrel a line??

http://forums.contractoruk.com/accou...hould-i-5.html

[chrisl]

Sorry maybe i should be clearer.

If I am wanting to use the EIS scheme to invest personally into a new company then i can do so and obtain personal tax relief.

But is there a better way for me to invest from my limited company into a new company that meets the criteria as you would normally do personally.

Just wanted to check before £10k is invested personally that there is not a better way to do it via my limited company.

[northernladuk]

HM Revenue & Customs: An Introduction to the Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.

and more importantly...

Both investors and companies should note that no relief will be given (or if it has been given, it will be withdrawn) if any scheme has as its main purpose, or one of its main purposes, the avoidance of tax. (The tax reliefs available under the EIS are of course not considered to be avoidance of tax.)

[chrisl]

Is there such a thing?

I know you can obtain tax relief at 30% investing personally but could you invest from the business directly and would this be worthwhile?