Tax Reliefs

 

UK resident tax domiciled investors are eligible to receive significant tax reliefs on qualifying investments, as shown below.

Income Tax Relief: (under EIS rules, requiring an investment to be held for 3 years)
 
  • 30% on the value of EIS investments made by a private investor
  • Up to £1,000,000 invested in any one tax year per investor
  • Carry back relief: can be claimed against income tax paid in the previous tax year

 

 

CGT Relief: (under EIS rules)
 
  • 100% exemption is provided on unlimited investment gains

  • Deferral relief is available on capital gains arising from other investments, Realised up to 3 years prior to or 1 year after making an investment, but is taxable upon disposal

  • If shares against which Capital Gains are deferred are held until death, the deferred relief becomes indefinite

 

IHT Relief: (under BPR rules, requiring an investment to be held for 2 years)
 
  • 100% exemption after two years from 40% tax rate on taxable assets in excess of £325,000

  • Where proceeds of an exit are re-invested into IHT qualifying companies, IHT exemption can be maintained in BPR qualifying assets

 

Loss Relief: (when shares are disposed of at a loss)
 
  • Up to 45% can be claimed against income or capital gains tax
  • Can be carried forward to set against future income

 

Investors are strongly recommended to take professional advice from their appropriately qualified financial or tax adviser, prior to investing.

 

 

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Longbow Capital LLP is authorised and regulated by the Financial Conduct Authority. FCA No. 402753