This comment was minimized by the moderator on the site. There are no comments posted here yet. Leave your comments. Posting comment as a guest. Name Required. Email Required. Rate this post:. Reset Rating. Share Your Location. What is tax efficient investing?
Three of the most notable tax efficient investing schemes. The generous tax reliefs available to investors. Access to growth capital is important not only as a means of helping entrepreneurs to realise their business vision, but also as an encouragement for entrepreneurs to develop business visions. EIS is designed to boost the flow of growth capital into early- stage, unlisted businesses those not trading on an open market.
Maintaining a strong pipeline of startup businesses is important to the future success of the UK economy. There is no minimum investment through EIS in any one company in any one tax year. The shares must be held for at least three years from the date of issue or the tax relief will be withdrawn. The individual investor can be a director of the company, but not an employee. EIS tax relief applies only to recently incorporated companies.
The resultant MICAP Impact Scores should not be taken as financial advice or a complete and comprehensive analysis of the risks of investing in the investment, which are usually set out in the Information Memorandum, Prospectus or Brochure supplied by the Investment Manager. Alternative and unquoted investments are inherently high risk and invested capital is at risk.
Tax ramifications may vary depending on the investor's personal circumstances. Investment Guide. There is a high probability that an EIS qualifying investment will fail.
Additionally, EIS investments are illiquid, meaning you are unlikely to be able to sell your investment easily and if using a professional EIS manager, you are unlikely to have any control as to when an investment is sold. Whilst the EIS carries attractive tax reliefs and the opportunity for substantial capital growth, successful EIS companies are not the norm.
With this in mind, it is important to remember that the favourable tax treatments afforded to these types of investments are there in part to counter the additional risks associated with investing in unquoted companies. To obtain such approval, the company must satisfy a number of requirements imposed by HMRC.
To avoid the need to personally identify, scrutinise and value quality small companies, many investors utilise professional EIS managers. EIS managers will identify a number of opportunities and handle the purchase and sale of EIS shares on your behalf. Through our rigorous due diligence process, Barclays Wealth Management has identified what we believe is a diverse and best in class panel of EIS managers.
If you believe the EIS is right for you and that it could be a difference maker for your portfolio, contact your Barclays Wealth Planner. Speak to your Wealth Manager or contact us if you would like to arrange a meeting with a Wealth Planner to discuss your options.
Your Wealth Planner can help you understand the effect of tax on your wealth and offer tax-efficient wrappers for your investments. Your planner can't offer tax advice — you should seek that independently. Please bear in mind that tax rules can change in future and their effects on you will depend on your individual circumstances. This article does not constitute personal financial, tax or legal advice.
The value of investments can fall as well as rise.
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