Investing in shares in small companies under an EIS or SEIS scheme allows the investor to benefit from attractive income tax & capital gains tax incentives.
Capital gains can be deferred where re-investment is made under either EIS or SEIS, meaning that the tax payable on the sale of the first asset is delayed until the sale of the EIS shares.
Until recently, if the sale of the first asset qualified for a lower 10% tax rate this was not preserved when the gain was deferred. This discouraged many investors as they would rather pay 10% earlier than 18% or 28% later.
The good news is that as of 3 December 2014, any gains deferred under EIS or SEIS are deferred with the benefit of the 10% rate of tax.
Why not contact Lesley Sutton on 01484 550 037 or email email@example.com to find out more about EIS and SEIS; two very tax efficient investment schemes.