Capital Taxes


Double up on your EIS Investments

As part of his Budget speech today the Chancellor, Philip Hammond, announced plans to further encourage new tech businesses. Together with the promise of over £500million of investment in a range of initiatives such as 5G, full fibre broadband and Artificial Intelligence he published an ‘Action Plan’ to unlock over £20 billion of new investment in UK scale-up businesses.

Part of this ‘Action Plan’ is to double Enterprise Investment Scheme (EIS) limits for, what he termed as ‘knowledge-intensive companies’. However, while the limit will be doubled for investment in this specific type of company, measures will be taken to ensure that EIS is not used as a shelter for low-risk asset backed investments.  

Currently, the maximum investment limit in EIS for which Tax relief is available is £1million, attracting a 30% Income Tax relief and a Capital Gains Tax deferral, if applicable, on investment. Any capital gains made on the EIS shares are also free of Capital Gains Tax if the investment has been held for at least three years.  This measure will increase the annual limit for individuals investing in EIS, including in knowledge-intensive companies, to £2million provided that anything above £1million is invested in the knowledge-intensive companies.

The annual EIS and VCT limit on the amount of tax-advantaged investments a knowledge-intensive company may receive will be increased to £10 million.

The changes for EIS will apply to shares issued on or after 6 April 2018. For VCTs, the changes will apply to new qualifying investments made on or after 6 April 2018.

Taxation of trusts

The government will publish a consultation in 2018 on how to make the taxation of trusts simpler, fairer, and more transparent.

Our handy Tax Facts Pocket Guide provides you with the rates and figures you need to manage your personal and business finances.

Autumn Budget News

Budget Highlights for UK Manufacturing

Whilst the recent budget didn’t throw up any significant headline announcements for our Manufacturing Sector, there were various items outlined which should have a positive impact on the sector, including: Research & Development

Budget Review for Retail Sector

There are number of areas in the Autumn Budget that will impact on the retail sector.

Impact of the Budget for Family Businesses

It will come with little surprise that the second budget of 2017 failed to offer significant headline announcements, despite the rumour mill going in to overdrive during the past few days.

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