JR Bloodstock Investment EIS Investment Opportunity
An investment in our pinhooking operation qualifies for the attractive tax breaks in the UK offered through the Enterprise Investment Scheme (EIS).
EIS is a government initiative and in order to qualify for the benefits you need to invest in the shares of a small, unlisted company granted EIS approval by HMRC. Investing in small companies is considered riskier than buying shares in large established companies, hence the tax incentives to encourage the initial investment.
Furthermore, the shares must be held for three years and the company must remain compliant with the operational regulations associated with EIS companies.
In September 2016 HMRC gave approval for Cill Dara Bloodstock Limited to issue shares under the EIS scheme. Cill Dara Bloodstock is the registered name of the company and the successful application was for the sole purpose of investment in the qualifying trade of trading in bloodstock. The company’s EIS status was extended in 2019.
Through EIS, investors can obtain Income Tax and Capital Gains Tax breaks for their investment, for example:
Investments will benefit from income tax relief equivalent to 30%, irrespective of the individual’s tax rate. Relief can be used in the current tax year or carried back to the preceding tax year assuming there was a tax liability that year.
Capital Gains Tax (CGT)
Any gain on the sale of EIS shares will be exempt from CGT as long as the shares obtained income tax relief, which has not been withdrawn, and are held for at least three years and the investment did not exceed £100,000.
Inheritance Tax Relief
Shares held for at least 2 years receive 100% relief on their value.
There is also an additional exemption where assets are disposed of at a gain in that year and funds equal to the amount of the gain are invested in EIS shares.
Any losses realised on the sale of shares, after having held them for 3 years, attracts a tax credit at individual’s highest marginal tax rate. This can be applied to income tax liability in current or previous year or CGT in current or future years.
The maximum individual investment is £1m and the total invested through the scheme must not exceed £5m in one year.
Before any investment you should confirm the content of this website and your eligibility with a qualified Financial Advisor.
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