Following our theme of the seven deadly sins of tax planning, or in other words seven key things to make sure that you avoid prior to the 5 April 2019, this week we consider…..forgetting to consider enterprise investment scheme / Venture capital trusts when you have a large income tax bill.
If you have a large income tax liability, and have cash to invest you might want to consider using the enterprise investment scheme (EIS) or a venture capital trust (VCT).
These investments attract income tax relief and often carry other tax incentives, such as tax free disposal. For instance, if you invest under EIS then you will receive income tax relief at a rate of 30% and the investment will be free from capital gains tax when sold.
There are a number of conditions to be met for the relief to apply, and typically you would invest via a product provider. This type of investment is not for everyone, as it tends to carry more risk, if you are interested you should speak to a financial advisor.
For more information, speak to your financial advisor or contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.