Chapter 8 - Tax Reducers

Question 1

How is tax relief applied to the Enterprise Investment Scheme?

Answer 1

30% of the lower of the amount subscribed or £1 million (max reducer therefore £300,000)

Question 2

How is tax relief applied to the an EIS Knowledge Intensive Company?

Answer 2

30% of the lower of the amount subscribed or £2 million (max reducer therefore £600,000)

Question 3

What happens if the tax relief is greater than the amount owed?

Answer 3

The amount owed is reduced to Nil

Question 4

How is tax relief applied to Seed Enterprise Investment Schemes?

Answer 4

50% of the lower of the amount subscribed or £200,000 (max reducer therefore £100,000)

Question 5

How is tax relief applied to Venture Capital Trusts?

Answer 5

30% of the lower of the amount subscribed or £200,000 (max reducer therefore £60,000)

Question 6

In what order should tax reducers be applied?

Answer 6

VCT, EIS, SEIS, MA