VCT, EIS,SEISS

Question 1

What is the income tax relief for an EIS?

Answer 1

30%

Question 2

What is the income tax relief for a VCT?

Answer 2

30%

Question 3

What is the income tax relief for a SEIS?

Answer 3

50%

Question 4

What is the holding period for relief on an EIS?

Answer 4

3 years

Question 5

What is the holding period for relief on an SEIS?

Answer 5

3 years

Question 6

What is the holding period for relief on an VCT?

Answer 6

5 years

Question 7

What is the investment limit for relief for an EIS?

Answer 7

£1million

Question 8

What is the investment limit for relief for an SEIS?

Answer 8

£100,000

Question 9

What is the investment limit for relief for an VCT?

Answer 9

£200,000

Question 10

Is a VCT liable for CGT?

Answer 10

No - exempt asset

Question 11

Is an EIS liable for CGT?

Answer 11

Gains free if held for 3 years

Question 12

Is a SEIS liable for CGT?

Answer 12

Gains free if held for 3 years

Question 13

Out of VCT, EIS & SEIS which has CGT deferral for other gains made and what does it mean?

Answer 13

EIS only

EIS
When reinvesting realised gains into EIS, gains made 3 years prior or 1 year post EIS Investment. Deferred until disposal of EIS

Question 14

Out of VCT, EIS & SEIS which has CGT exemption in relation to other gains made and what does it mean?

Answer 14

SEIS
When reinvesting realised gains into SEIS, gains made in the same tax year. CGT on original gain is 50% exempt from CGT

Carry back 1 tax year facility for CGT Purposes

Question 15

Which out of VCT, EIS & SEIS qualify for Business Property Relief?

Answer 15

EIS & SEIS

Question 16

Can you offset losses on a VCT?

Answer 16

No

Question 17

Can you offset losses on an EIS or SEIS, what does this mean?

Answer 17

Yes, net loss, post income tax relief can be offset against other income or gains

Question 18

IS there tax on dividends for VCTs, EISs and SEISs?

Answer 18

VCT - No

SEIS & EIS - yes

Question 19

What are VCT qualifying conditions?

Answer 19

Listed on stock exchange

Income wholly/mainly from shares/securities

70%+ invested in qualifying holdings

No more than 15% total investments in one company

Less than 250 FTE (500 knowledge intensive)

At leas 70% qualifying holdings to be in new ordinary shares

If benefiting from renewable energy subsidies can’t benefit

Question 20

What are the Tax relief conditions for EIS?

Answer 20

Qualifying individual - not connected to company when subscribing

Qualifying shares - new ord. share, not redeemable for 3 yrs.

Qualifying company - unlisted when issued shares

Fewer than 250 FTE

Gross assets below £15m before and £16m after issues

Can’t have raised more than £5m in past 12 months

If benefiting from renewable energy subsidies can’t benefit

Question 21

What are SEIS conditions?

Answer 21

Unquoted when issues shares

25 or less employees

less than 2 years old

Less than £200K gross assets

If benefiting from renewable energy subsidies can’t benefit