January to March is the traditional EIS and VCT fundraising ‘season'. Matthew Brow, partner at RAM Capital Partners which markets the investments, gives a rundown of the New Year benefits on offer.
Shareholdings in EIS qualifying companies can be for up to £500,000 - £1m from April 2012. VCTs can be for up to £200,000. Both give tax relief to individuals investing in higher risk unquoted trading companies. VCTs can be used as a pension supplement, to boost income and reduce income tax. EIS investments can be used as a tax mitigation tool to cut IHT, CGT and income tax. Income Tax Subject to likely European Commission approval, next year's New Year investors will benefit from a rise in the rate of income tax relief on EIS shares issued after 5 April 2011 from 20% to 30%, once ...
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