EIS Scheme Changes for Investors

The Enterprise Investment Scheme (EIS) was enhanced in the 2011 Budget, and further expansion and relaxation of the scheme’s complexities can be anticipated.

The changes announced in the 2011 Budget include an increase in the rate of income tax relief on investment from 20% to 30% from 6 April 2011. In addition, there were increases announced to the amount an individual can invest in EIS shares in a tax year (from £500,000 to £1m) and the amount a company can raise via the scheme per annum (from £2 to £10m). These changes will take effect from 6 April 2012.

More interestingly, HM Treasury has just completed a consultancy process on EIS among advisers in the Scottish market. The group – with representation from Purves Chartered Accountants – was able to meet with a team from HM Treasury and HMRC to discuss EIS and our views on how it could be improved. It was encouraging to observe the Government’s willingness to listen to those at the sharp end and we look forward to the March 2012 Budget where we hope further relaxation of the rules may be announced along with a possible new,  simpler, scheme for seed funding and perhaps tax relief being extended to debt - as well as equity - funding.

Purves Chartered Accountants advises TRI Cap members on EIS and other investment issues. Please contact Stephen Smith on 01896 823506 or stephen.smith@purvesca.co.uk.

 

END

October 2011

Issued on behalf of TRI Cap by Eileen Prior, PR Consultant.
For further information contact Eileen Prior on 07802 180412, or email priorpr@btinternet.com


Visit www.tricapital.co.uk for more information.


 

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