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Enterprise Investment Scheme (EIS)

Posted at 23/11/2012 | By : | Categories : News / Blog | Comments Off on Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme is an HM Revenue & Customs scheme which enables tax relief to investors of 30% of the cost of the shares. It is designed to help small startups like ours to raise finance.

Shareholders must pay enough tax to cover the reliefs and retain their investments for three years to benefit from the tax reliefs. Investors can choose to treat their subscription for EIS shares as if made in the previous tax year. This enables income tax relief to be carried back one year.

The Enterprise Investment Scheme is administered in HMRC by the Small Company Enterprise Centre (SCEC). As Whalley Hydro meets the requirements we are currently applying to the SCEC for advance assurance that we are eligible. Final confirmation that our share issue qualifies can only be given by SCEC once we have been trading for four months.

For more information go to the HMRC website.


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