cryptohunter
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The EIS in the UK encourages people to invest in small and risky businesses by offering tax perks. It's a win-win for both investors and the companies looking for funds.
For investors EIS gives a 30% income tax relief on what they invest in qualifying shares, up to a set yearly limit. This makes it more appealing for individuals to put money into early-stage businesses, helping reduce the risks.
On top of income tax relief, EIS also comes with capital gains tax (CGT) exemptions. Investors get CGT deferral relief, meaning they can delay paying capital gains tax by putting the gains back into EIS-qualifying shares. And if they hold onto the EIS investment for a set time, any profit from selling those shares becomes tax-free.
For companies EIS is a great way to get equity financing. It helps them attract investors by offering big tax benefits, promoting entrepreneurship, innovation, and economic growth in the UK.
For investors EIS gives a 30% income tax relief on what they invest in qualifying shares, up to a set yearly limit. This makes it more appealing for individuals to put money into early-stage businesses, helping reduce the risks.
On top of income tax relief, EIS also comes with capital gains tax (CGT) exemptions. Investors get CGT deferral relief, meaning they can delay paying capital gains tax by putting the gains back into EIS-qualifying shares. And if they hold onto the EIS investment for a set time, any profit from selling those shares becomes tax-free.
For companies EIS is a great way to get equity financing. It helps them attract investors by offering big tax benefits, promoting entrepreneurship, innovation, and economic growth in the UK.
