Investment Schemes
We are primarily focused on EIS or SEIS qualifying investment opportunities.
Overview of Enterprise Investment Scheme
30% tax relief
Investments under EIS have income tax relief of 30%
Offset potential
An investor can elect to carry back the investment to the previous year (ie: offset the investment against the prior year’s income tax liability)
Loss relief available
Loss relief is available on EIS shares if they are disposed of at a loss. This can be offset against an individual’s highest rate of income tax (ie: the highest rate is 45%) from that tax year, or the previous year
EIS tax relief
EIS income tax relief can be withdrawn if the investor owns more than 30% of a company within 3 years
of their investment or the company becomes a non- qualifying EIS company within 3 years of investing
£2m EIS per annum
The maximum amount an individual can invest is £1 million per tax year or £2 million, providing anything above £1 million is in ‘knowledge intensive’ investments
Tax reduction
After 2 years EIS investments are free of inheritance tax, and after 3 years are free of capital gains tax
Low chargeable gains
Chargeable gains arising 3 years prior and 1 year after the investment can be deferred into an EIS investment
Regular dividend tax
Dividends from EIS investments are taxed in the usual way
*This is Adjuvo’s interpretation of the rules as of 13.01.23. investors should seek their own tax advice
Overview of Seed Enterprise Investment Scheme
50% tax relief
Investments under SEIS have income tax relief of 50%
Offset potential
An investor can elect to carry back the investment to the previous year (ie: offset investment again the prior year’s income tax liability)
Loss relief available
Loss relief is available on SEIS shares if they are dis- posed of at a loss. This can be offset against an individu- al’s highest rate of income tax (ie: the highest rate is 45%) from that tax year, or the previous year
Low chargeable gains
Chargeable gains arising in the same tax year as the SEIS income tax relief is claimed can receive CGT reinvestment relief. The relief exempts half the gain being reinvested from CGT. These gains crystalise if the SEIS conditions fail in the 3 years after the investment.
£100k SEIS per annum
A maximum of £100k can be invested in SEIS qualifying companies per annum
Tax reduction
After 2 years SEIS investments are free of inheritance tax and after 3 years are free of capital gains tax. Dividends from SEIS investments are taxed in the usual way
SEIS tax relief
SEIS income tax relief can be withdrawn if the investor owns more than 30% of a company inside 3 years of their investment or the company becomes a non- qualifying SEIS company within 3 years of investing
*This is Adjuvo’s interpretation of the rules as of 13.01.23. investors should seek their own tax advice