Ch 27: Financial Management Flashcards
What is the annual investment limit for EIS?
£1m
What is the annual investment limit for SEIS?
£100k
What is the annual investment limit for VCT?
£200k
What % is relieved for income tax against EIS?
30%
What % is relieved for income tax against SEIS?
50%
What % is relieved for income tax against VCT?
30%
When is IT clawback for EIS and how do you calculate it?
If held for less than 3 years - clawback amount calculated as: proceeds received x rate of relief (credit used/investment)
When is IT clawback for SEIS and how do you calculate it??
If held for less than 3 years - clawback amount calculated as: proceeds received x rate of relief (credit used/investment)
When is IT clawback for VCT?
If held for less than 5 years
What is the reinvestment relief period for EIS?
12m before, 36m after - can DEFER the gain. The relief is the lower of:
- the gain
- the amount invested in EIS shares
- entrepreneurs relief available on shares sold
What is the reinvestment relief period for SEIS and how much is the relief?
same tax year - can EXEMPT part of the gain. The relief is the lower of:
- 50% of the gain
- 50% on the investment in SEIS shares
Are there tax free dividends for EIS?
No
Are there tax free dividends for SEIS?
No
Are there tax free dividends for VCT?
Yes
Are there tax free capital gains for EIS?
Yes, after 3 years
