The Enterprise Investment Scheme regime makes early stage investing particularly attractive for UK resident tax payers.

Committed Capital's EIS Fund is currently open for new investment.

Companies that qualify for EIS (criteria include being based in the UK with fewer than 250 employees) can take up to £5 million of EIS funds in any 12 month period.

Below is a short summary of EIS tax benefits. These benefits depend on your individual tax position which may be subject to change in the future. If you are unsure of your own potential tax liabilities, you should seek professional advice from a qualified tax adviser. 

30% UPFRONT TAX RELIEF

You will receive 30% tax relief on the amount invested in EIS qualifying companies against your income tax bill for the year of investment, up to a maximum of £1 million invested. In addition, you also have the option to carry back tax relief to the prior tax year, on further investments (limited to £1 million for the 2014/15 tax year). Investments need to be held for at least three years for the benefits to be retained. Please note, not all your investments will necessarily fall in the same tax year.

CAPITAL GAINS TAX (CGT) DEFERRAL

CGT, such as from the sale of shares or a second property, can be deferred for the life of the EIS investment. You can defer any gains made in the three years prior to, or the year following, the date your investment into the EIS companies is made. 

LOSS RELIEF

At the current rates of income tax, up to 45% loss relief may be available on any holdings that are realised at a loss net of initial income tax relief, helping to offset the effect of any assets which underperform in the overall portfolio.  The investor can choose whether to set the loss relief against other gains made now or in the future, or against income for the year in which the loss arises or the previous year.

UP TO 100% INHERITANCE TAX (IHT) RELIEF

The companies in which we invest will also qualify for Business Property Relief. This means that investments made through the Fund can be exempt from inheritance tax (IHT) after just two years (from the point at which the investment into the underlying EIS company is made). In order to qualify, the investments must also be held at the time of death.

TAX FREE GROWTH

All capital gains made from EIS investments are tax free (when held for the minimum three year holding period). Given the higher returns targeted by the Committed Capital EIS Growth Fund, this is an important tax benefit, allowing investors to include smaller companies in their investment portfolio in a highly tax efficient manner.

Companies that qualify for EIS (criteria include being based in the UK with fewer than 250 employees) can take up to £5 million of EIS funds in any 12 month period.

Below is a short summary of EIS tax benefits. These benefits depend on your individual tax position which may be subject to change in the future. If you are unsure of your own potential tax liabilities, you should seek professional advice from a qualified tax adviser.