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The UK Budget...

...What does this mean for Business Angel Investors?

 

The UK Budget was almost... as dull as last year... but at least they made a start on reducing the £168bn deficit by increasing stamp duty!

The good news is that entrepreneurs' relief is doubled to a lifetime limit of £2m where CGT will be payable at 10% rather than 18%.
The bad news is that the treasury expects this to only cost them £70m.

 

2 important changes to EIS relief:

•    Companies in difficulty will no longer qualify - we read this to mean companies in administration although no definition as yet.

•    Secondly, the requirement for 'EIS Company to carry on trade wholly or mainly within UK' is now changed to 'Must have a permanent establishment in UK'
     - With initial relief at 20%,
     - CGT exemption on profits,
     - the ability to write off losses against income tax at up to 50% and
     - roll over previous capital Gains into EIS investments and defer tax to a later date and possibly more benign rates. 

EIS is once again very attractive to investors.

 

Most of our direct investment opportunities are EIS qualified, but if you wish to invest in a managed portfolio of EIS qualified companies, please contact Roderick Beer:

0207 329 4884 / beer@beerandpartners.com

or please CLICK HERE for further information.