Claiming Tax Relief for Enterprise Investment Scheme

 What Is the Enterprise Investment Scheme?

Enterprise Investment Scheme (EIS) is designed to raise capital for smaller, riskier companies in the United Kingdom. This investment program helps enterprises for growing faster as it offers tax relief to the investors who buy new shares in the company. It encourages new investment in higher-risk trading companies. 

How does your company qualify as an EIS company?

Both the companies and their investors fulfil the below requirements to qualify for EIS tax relief: 

• The company must have a UK permanent establishment and be unquoted;
  
  
• Before the investment company's gross assets must not exceed £15 and £16 million after the investment;
  
  
• For the knowledge-intensive company, the number of full-time employees must not exceed 500 or 250 for other;
  
  
• The company must be aiming for development and growth in the long term;
  
  
• There must be a substantial danger to the investor that there will be a loss of funds over the amount of net investment return;
  
  
• The company must only have qualifying companies:
  
  
• The company must not be under the authority of another group; 
  
  
• The company must not be in an economic problem;

A company can raise a maximum of £5 million through the EIS scheme and £10 million for Knowledge Intensive Company.  

Taxpayers must obtain Form EIS3 from the company to claim tax benefits. The investor loses their tax relief claim if the company loses its qualifying status despite having no control over the company’s decisions.

What is a Knowledge Intensive Company?

Knowledge Intensive Companies are firms that are carrying out R & D, or innovation at the time of issuing shares. They have a particular status under EIS, and can raise more EIS investment, more flexibly, than non-KIC companies.

What is the inheritance tax position in relation with the EIS shares?

Once a two year ownership term has been satisfied, shares will attract Business Property Relief at the pace of 100% and thus escape inheritance tax. 

We can provide you complete assistance with the correct advice at the right time to make sure that an investment is appropriately structured to attract EIS relief.

Our tax accountant in UK review your company and the nature of your trade and apply for advance EIS assurance that the firm is a qualifying company running a qualifying trade. 

Professional Accountants for Startups & SMEs in London

 

Getting the right small business accountants in a city like London is no easy task as there are too many to choose from and trail and error certainly cannot be the yardstick in this case. We figure in the Top 100 UK Accountancy Practices. Finding accountants in a city is one thing, but finding dedicated accountants with over two decades of experience is a whole new ball game.

Our human resource strength exceeds 350 and counting and our staff is passionate about accounting and assisting clients. In fact, we come and visit you on site to discuss accounts and provide a free phone help line on day-to-day accounting, employment and tax issues. Thus, if you need a good tax advisor in the city or someone to run the administration of your Work Place Pensions, Our Tax Advisor London is there to make things hassle free. Since clients always come first, we appoint a dedicated consultant to look after you and also discuss your accounting related queries. Our operations are flexible as well as friendly as we believe in the importance of the human touch. We operate as follows:

·       When it comes to documents we make a point to put things in writing as to what the requirements are and why we require the same. Also, we phone you to set up a convenient time and day for the collection of this information from your doorstep. You need not even categories the documents, simply just put them in a box, we will deal with the sorting

·       We ensure we explain what is required and why and are happy to discuss any accounts related matters that concern you during the collection process

·       Once we have completed your work, we will drop the documents back at your offices as per your convenience

·      We can also visit your business premises on normal working days to discuss Accounts & Tax Returns at agreed convenient times

·      We meet all the statutory & compliance requirements of Revenue, Customs Excise & VAT, PAYE, Companies House; and are also GDPR compliant

·      We will meet all your deadlines well within the time agreed. In fact, if we are dealing with your tax matters we will ensure that tax planning is done well in advance so that you get the most out of things

Contact us now to discover how Our Professional London accountants can help you and your business today.