Flashcards in EIS, VCT, SEIS, REITS Deck (6)
Name 4 qualification criteria for a REITS?
1. No single property can exceed 40% of the market value of the total portfolio
2. At least 75% of total gross profits must come from the ring fenced part
3. At least 90% of profits must be distributed to shareholders within 1 year of the end of the accounting period
4. 125% of interest on borrowing must be covered by rental profits
How is a REITS taxed?
The ring fenced part is Interest paid net, no corporation tax but subject to CGT.
The non-ring fenced element pays dividends gross but is subject to corporation tax and is also subject to CGT
Name six qualification criteria for an EIS?
1. Maximum funds raised through EIS funding £5 million
2. Fewer than 250 Employees
3. Must be unlisted company and have no plans to become listed
4. Must carry out a UK trade but not necessarily based in UK
5. Gross assets of no more than £15 million
6. Has to have been carrying out a QUALIFYING trade for at least 3 years
Name four qualification criteria for a SEIS
1. Less than £150,000 funding raised through SEIS in total not just the last year
2. Less than 25 Employees
3. Gross assets of not more than £200,000 immediately BEFORE the issue
4. Company must exist for it to carry on a new trade
Identify 3 further facts about REITS
1. Is an investment Trust
2. Must be UK resident
3. Must operate as a closed ended company on a listed stock exchange