Octopus tax relief scheme

The product has approval from HM Revenue and Customs which means investors can obtain 20pc income tax relief when the fund closes in mid-January 2007. Capital is returned after three years when investors can choose to reinvest into another EIS fund and then receive a potential further 20pc income tax relief. Octopus said the EIS, which has a £14m capacity, opens up a new market for IFAs in capital gains tax deferral and inheritance tax planning. Octopus will only take its management fee if the net amount returned to the client in the third year is at least equivalent to the gross amount ...