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Tax Reliefs


UK resident tax domiciled investors are eligible to receive significant tax reliefs on qualifying investments. These tax reliefs can be in the form of income tax, capital gains tax, inheritance tax and loss relief. Further details can be found below or on the HMRC website.

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 Exempt: (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 Exempt: (under Business Relief rules, requires a minimum investment time frame of 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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