Budget 2004

Personal Taxation

Enterprise Investment Scheme (EIS)*

Income tax

• relief at 20% of subscription
• maximum subscription £200,000 (£150,000 pre 6 April 2004) per tax year
• minimum subscription £500 per scheme per tax year unless through an approved fund
• one year carryback available for the lesser of £25,000 and 50% of amount invested before 6 October in tax year
• holding period 3 years (5 years for shares issued before 6 April 2000)

Capital gains tax

• where income tax relief has been obtained original investor exempt from capital gains tax on disposal after 3 years (5 years for shares issued before 6 April 2000)
• chargeable gains deferred on reinvestment into qualifying shares
• no limit on amount of gains that may be reinvested
• reinvestment must occur between 1 year before and 3 years after date of gain
• taper relief period continues on serial EIS investments from 6 April 1999, provided first EIS shares acquired after 5 April 1998

For further information take a look at the in-depth article on the Enterprise Investment Scheme

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.