Connolly Accountants

Under new EIS rules coming into force in April 2012 up to £1,000,000 can be invested and you will gain income tax relief at 30%. The restrictions on the size of companies is being increased to 250 employees and assets up to £15m. Up to £10million can be raised.
Will the new limits help de-risk such investments

An EMI scheme allows permits you to the option to subscribe for £120,00o pounds in value of shares at todays valuation at any time up to 10 years in the future. Great for growing companies and a good time to set up such a scheme is at start up. You exercise your option to buy when it suits and the only tax you pay on any profits is capital gains when you sell.

Always a good option to seek HMRC approval of the valuation.

EMI’s should be part of everyones strategy, dont you think

Emerging from the black depths of the Autumn Statement comes a glittering jewel of real value.

The Seed Enterprise Investment Scheme (SEIS) will allow individuals to invest up to £100k per year in new or fledgling companies carrying on a trade. (up to £150k cumulative investment in one business). The investor will get 50% tax relief and if they have capital gains in that year they can get relief of  up to 28%. So, a £100k investment could cost as little as £22k.

I think its a bit of a no-brainer folks. What do you think?