Mark Ward (BDO) explains the qualifying conditions, benefits for investors and practical points when claiming relief.
Broadly the venture capital tax relief schemes seek to encourage investors to invest in unquoted trading companies to address the funding gap. They do this by offering investors tax reliefs including upfront income tax relief exemption from CGT on disposal and depending on the scheme CGT reinvestment relief or deferral. Relief for losses and business property relief for IHT should also be available except for VCT investments.
These schemes have provided valuable funding for many SMEs since their inception. The EIS alone has helped 28 000 companies raise £8bn in its 25 years of existence.
This article focuses on the qualifying conditions benefits for investors and practical points when claiming relief.
Eligibility for tax reliefs
Before we consider the tax reliefs it is...
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Mark Ward (BDO) explains the qualifying conditions, benefits for investors and practical points when claiming relief.
Broadly the venture capital tax relief schemes seek to encourage investors to invest in unquoted trading companies to address the funding gap. They do this by offering investors tax reliefs including upfront income tax relief exemption from CGT on disposal and depending on the scheme CGT reinvestment relief or deferral. Relief for losses and business property relief for IHT should also be available except for VCT investments.
These schemes have provided valuable funding for many SMEs since their inception. The EIS alone has helped 28 000 companies raise £8bn in its 25 years of existence.
This article focuses on the qualifying conditions benefits for investors and practical points when claiming relief.
Eligibility for tax reliefs
Before we consider the tax reliefs it is...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
