Budget 2004

Grant Thornton


Personal Taxation

Grant Thornton

Enterprise Investment Scheme (EIS)*

Income tax

  • relief at 20% of subscription
  • maximum subscription £200,000 (£150,000 pre 6 April 2004) per tax year
  • minimum subscription £500 per scheme per tax year unless through an approved fund
  • one year carryback available for the lesser of £25,000 and 50% of amount invested before 6 October in tax year
  • holding period 3 years (5 years for shares issued before 6 April 2000)

Capital gains tax

  • where income tax relief has been obtained original investor exempt from capital gains tax on disposal after 3 years (5 years for shares issued before 6 April 2000)
  • chargeable gains deferred on reinvestment into qualifying shares
  • no limit on amount of gains that may be reinvested
  • reinvestment must occur between 1 year before and 3 years after date of gain
  • taper relief period continues on serial EIS investments from 6 April 1999, provided first EIS shares acquired after 5 April 1998

For further information take a look at the in-depth article on the Enterprise Investment Scheme

* Qualification rules are complex, Inland Revenue approval required

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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