Budget 2004
Personal Taxation
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.
