Tax reliefs for individuals

EIS, SEIS, VCTs and SIR.

Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.

Maximum investment per annum: £1,000,000

Additional investment limit where investing in knowledge-intensive companies: £2,000,000

Income tax relief: 30%

CGT treatment on disposal if held for 3 years: Exempt

Capital gains from the disposal of other assets may be deferred by making an EIS investment.

Seed Enterprise Investment Scheme (SEIS)

The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.

Maximum investment per annum: £200,000 1

Income tax relief: 50%

CGT treatment on disposal if held for 3 years: Exempt

An individual who makes a capital gain on another asset and uses the amount of the gain to make a SEIS investment will not pay tax on 50% of the gain (subject to certain conditions).

Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.

1 Limits subject to Parliamentary approval.

Social Investment Relief (SIR)

Social Investment Relief (SIR) was designed to encourage private individuals to invest in social enterprises including charities.

SIR closed to any new investments from 6 April 2023.

Venture Capital Trusts (VCTs)

Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.

Maximum investment per annum: £200,000

Income tax relief: 30%

Dividend income: Exempt

Capital gains treatment on disposal: Exempt

(All reliefs are subject to detailed conditions being met.)

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Testimonials

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After working with Nicholas Charles for a year, we brought him on to join our board advisory team for BankToTheFuture.com because of his unique combination of financial tax advice, commercial understanding and ability to introduce the right connections at the right time. Nicholas has provided tax advice to our investors, facilitated introductions to investors as well as help us to implement controls and procedures to get the right balance of compliance, responsible procedures and good business practices. If you want somebody that understands the commercials of business and deal making combined with the technical skills of finance, tax and increasing shareholder value, Nicholas Charles is your man.

Simon Dixon | CEO & Co-Founder BankToTheFuture.com
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Nicholas has been an active supporter of our charity, and the Charles Group have sponsored our last three summer parties. He understands family businesses like ours but more importantly the need to give back to the local community and the life changing differences that can be brought about by charities. This is why we quickly became a client of the Charles Group. Nicholas appreciates that having a purpose greater than the individual needs of members can bring a family closer together as well as inspire the next generation. We admire Nicholas’ authentic approach towards Family Prosperity.

Paul Strank MBE and Irene Strank MBE | Founders of Paul Strank Roofing and the Paul Strank Charitable Trust
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I have worked with the Charles Group for 2 years on some very exciting projects and his ability to listen, provide objective advice and support my goals and ambitions has been a tremendous asset to me and my businesses. Nicholas cares deeply about those he works with and seeks to ensure great outcomes for all.

Penny Power OBE | Serial Entrepreneur
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The Charles Group has been our trusted accountants since we founded B-Engaged in 2013. Over the years, they’ve become an integral part of our journey, consistently going above and beyond to help us save money, optimize our structures, and minimize tax liabilities. They are more than accountants—they are key partners in our success.

Ehsen Shah | Founder and CEO of B-Engaged: Sports Marketing Activations Agency
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From our early days as a startup to becoming one of the largest suppliers to Assos and River Island, The Charles Group has been a constant and invaluable partner. They’ve played a vital role in reducing our overheads, analysing and advising on client profitability, setting up our internal bookkeeping systems, and providing invaluable business guidance. Their expertise has also helped us manage and reduce our growing tax liabilities. The team at The Charles Group has truly become part of our business family.

Gabby Chrysanthou | Director and co-founder of Loaded London