29 November 2011
Publications that covered this article include Accountancy Magazine, The Daily Telegraph, The Sunday Times and The International Adviser, 29 November 2011.
- But more companies will find themselves excluded from tax break because they are not risky enough
- Another blow for investors in solar energy
Roy Maugham, Tax Partner at our London office comments:
“Tax incentives to invest in EIS, seed companies and VCTs are a big concerted boost for investment in small companies.”
“The measures on the Seed Enterprise Investment Scheme on their own are estimated to be worth £115m in tax breaks to investors over the next five years.”
“A simplification of rules will allow an EIS company to attract investment from new directors and other connected persons which is a significant step forward.”
“A lot of potential investors in smaller companies will only make that investment if they can also take a seat on the board. EIS investors will find it easier to attract business angel style investors who combine management skills and investment capital.”
However, our research points out that some companies will now be excluded from EIS relief on the basis that they are not 'risky' enough.
Roy explains: “There have been some companies that have previously attracted EIS tax relief for their investors, such as ones that trade in block bookings of theatre tickets, who may find it harder to qualify for EIS relief.”
“The Chancellor has also explicitly excluded investment in “Feed-in- Tariffs”. Following recent cuts in feed-in-tariffs small investors in solar energy might begin to wonder what they have done to upset the Chancellor!”
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