EIS, VCT, SEIS Flashcards
What is the maximum tax relief, plus the maximum investment into a EIS?
30% tax relief up to £1m. Can also carry back one year so you can invest £2m if not invested in previous tax year
How long do you have to hold EIS shares for there to be no CGT?
3 years
What is different with an eis compared to a VCT/SEIS
You can use the gain from another investment and put it in an EIS to defer the gain. This is useful if you are a higher rate tax payer and know you will be a basic rate tax payer in the future
What income tax do you receive on an SEIS and how much can you put in
50% income tax relief up to £100k you can also carry back for one year if allowance not used so £200k in total
Explain the SEIS CGT reliefs
No CGT payable if held for 3 years
50% capital gains reinvestment relief
You could reduce the CGT on gains made elsewhere by up to 50%. To benefit, you must have had the income tax relief in the same year.
How long do you have to hold VCTs for to avoid CGT
No minimum holding period
Out of EIS, VCT and SEIS, which one offers tax free dividends
VCT
