Investing over £500 in EMSOL? We are EIS qualified so don’t miss the opportunity to take advantage of the range of tax relief this offers! Invest in EMSOL on Seedrs
What is EIS?
You may have heard us raving about how we’re EIS qualified and depending on your experience in investing or where you are based in the world you may not have a clue what this means. EIS stands for the ‘Enterprise Investment Scheme’ which is set up by the UK government. It allows us to offer a range of tax reliefs to individual investors who buy new shares in our company.
These tax reliefs include:
- INCOME TAX RELIEF. Qualifying company investors can claim 30% income tax relief on the amount invested in EMSOL against their income tax bill.
- NO CAPITAL GAINS TAX. Provided EMSOL shares are held for a minimum of three years, there is no Capital Gains Tax (CGT) due on the proceeds.
- INHERITANCE TAX / BUSINESS RELIEF. EMSOL will also qualify for Business Relief. Shares that have been held in EMSOL for two years or more at the point of death, fall outside of an investor’s estate for IHT purposes.
- LOSS RELIEF. Loss relief applies in the event that an investment becomes crystallised as a loss. Investors can offset up to 45% of this loss, net of tax relief.
- CAPITAL GAINS TAX DEFERRAL RELIEF. Capital gains made 3 years preceding or 12 months after investment can be deferred utilising EIS qualifying companies (EMSOL!)
- BUSINESS INVESTMENT RELIEF. A UK resident, non-domiciled individual can remit ‘clean capital’ (i.e. offshore funds that do not represent income or gains that would be taxed on remittance) to the UK without a tax charge.
So which investors can benefit from the scheme?
If you are an investor, you must satisfy the following requirements to qualify for EIS:
- – Only UK tax resident investors are eligible to claim EIS
- – Your interest in the company must be less than 30%
- – You must not be an employee, partner or ‘paid director’ of the company
- – No partner or associate of yours may have interests in the company (including your spouse, relatives or previous business contacts)
- – You must not have any form of preferential shares
- – You must not have any form of controlling interest in the company
- – You must not be using the scheme as a form of tax avoidance.
EIS will only be available on investments over £500 so if you’re looking to make the most of EIS tax relief ensure your investment is above this figure and please read the online HMRC guidance or contact your professional tax advisor.
How do you claim for EIS?
As an investor, you will usually claim EIS tax relief when filling out your tax return. In your Self-Assessment tax return, you will be provided with supplementary pages SA101 which is where you should give details of your EIS share disposal and the EIS tax reliefs for which you wish to claim.
If you invest through our Seedrs Crowdfunding campaign you will be issued with the EIS3 certificates required to claim the relief once the fundraising round is complete.
Seedrs have a handy guide talking you through the process here: https://www.seedrs.com/insights/investing-features-insight/claiming-eis-and-seis-relief