Individuals (including husbands and wives separately) can each claim 20% income tax relief on the costs of investment in EIS Qualifying Companies (up to £400,000 per annum) against their individual income tax liability for the tax year.
For shares issued after 5 April but before 6th October in a tax year, income tax relief equal to 20% of one half of the costs of investment in EIS Qualifying Companies (subject to maximum costs of £25,000) may be set against the individual investor's income tax liability for the previous year.
The shares in the EIS Qualifying Companies must be held for at least 3 years. Furthermore, neither the Investor (nor the spouse) must be connected with the Qualifying Company (broadly, as an employee, partner or director or as a shareholder) within two years before investing in the EIS Qualifying Company. Any breach of these conditions would mean that EIS Relief would not be available.
Example
£
Initial investment
50,000
Less income tax relief at 20%
(10,000)
Net cost of investment
40,000
Disclaimer
All information provided within the EnviroMatch website is intended for guidance purposes only. The content of the website is of a general nature and EnviroMatch Ltd does not represent or warrant that the content is accurate, complete or current. It is recommended that any user seeks professional, independent advice on any issue before taking action. EnviroMatch Ltd can not and does not accept responsibility for loss arising from any action taken as a result of information supplied on the site, including errors and omissions.
