PRIVATE COMPANY EQUITY FUNDRAISNG INVESTORS

WAM has a network of investors who are actively seeking opportunities to invest in early stage businesses, predominantly in the UK and usually eligible for EIS or SEIS tax relief.

EIS TAX RELIEF

  • The shares must be held for at least 3 years otherwise relief will be withdrawn.
  • Income tax relief at 30% in the year of investment or previous year up to a maximum of £1m investment per year.
  • No CGT – 100% capital gains tax relief if disposed of after 3 years and the company has maintained EIS requirements
  • CGT deferral – capital gains tax can be deferred where a gain is used to invest in an EIS qualifying company.
  • Loss relief – after taking into account initial income tax relief, up to 45% of the remaining investment can be offset against income tax (or capital gain) in the event of a total loss.
  • No IHT – no inheritance tax if the shares have been held for at least 2 years at the time of death.

SEIS TAX RELIEF

  • The shares must be held for at least 3 years otherwise relief will be withdrawn.
  • Income tax relief at 50% in the year of investment or previous year up to a maximum of £100,000 investment per year.
  • No CGT – 100% capital gains tax relief if disposed of after 3 years and the company has maintained EIS requirements.
  • Re-investment relief – if a capital gain is used to make the investment then 50% of the gain is subject to relief so long as it is in the same year as income tax relief is also claimed.
  • No IHT – no inheritance tax if the shares have been held for at least 2 years at the time of death.