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Investments
It takes more than just capital to grow
Invicta offer investors access to companies which can benefit from a powerful combination of a ‘hothouse’ of advisers to provide the full range of business services and mentoring, in conjunction with the capital needed to grow on the international stage
There have been significant changes to the legislation surrounding what companies qualify for Enterprise Investment Scheme (EIS) relief in recent times. The result of these changes means that the “structured” and “asset backed” EIS investment companies of old no longer qualify for EIS relief.
What does this mean for investors, and their advisers? It means that the government expects investors to take on significant risk in an EIS investment in order to obtain the generous EIS tax reliefs on offer.
Investors need to approach EIS with a clear understanding of what is involved, but, where there is risk, there is also an opportunity for growth and gains to be made. How then should investors and advisers approach this evolution in the EIS market with such a wide range of new opportunities available? Sectoral experience and help for investee companies are more important than ever before.
Enterprise Investment Schemes (EIS)
Enterprise Investment Schemes were started as a way of encouraging investment in to smaller and earlier stage companies by offering generous tax reliefs to investors. A summary of the tax reliefs, investment criteria and minimum holding periods are below, but please note that EIS investments carry a high risk to capital, and you should read the Investment Memorandum for an Invicta EIS Fund in full, and in particular the risk warnings.
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30% income tax relief available
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Capital Gain Tax deferral relief available
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Loss relief available
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Inheritance tax relief available
Minimum holding period of 3 years for the investment, but investors should consider a minimum time scale of 5 to 7 years for the investee companies to achieve an exit.
£1,000,000 investment available per person per tax year.
Please note tax reliefs are liable to change over time. We highly recommend consulting with an independent financial adviser before making an investment into an EIS to assess whether it is suitable for you and to fully understand the risks and timescales involved.