EIS, VCT, SEIS Flashcards Preview

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Flashcards in EIS, VCT, SEIS Deck (7)
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What is the maximum tax relief, plus the maximum investment into a EIS?

30% tax relief up to £1m. Can also carry back one year so you can invest £2m if not invested in previous tax year


How long do you have to hold EIS shares for there to be no CGT?

3 years


What is different with an eis compared to a VCT/SEIS

You can use the gain from another investment and put it in an EIS to defer the gain. This is useful if you are a higher rate tax payer and know you will be a basic rate tax payer in the future


What income tax do you receive on an SEIS and how much can you put in

50% income tax relief up to £100k you can also carry back for one year if allowance not used so £200k in total


Explain the SEIS CGT reliefs

No CGT payable if held for 3 years

50% capital gains reinvestment relief

You could reduce the CGT on gains made elsewhere by up to 50%. To benefit, you must have had the income tax relief in the same year.


How long do you have to hold VCTs for to avoid CGT

No minimum holding period


Out of EIS, VCT and SEIS, which one offers tax free dividends