What is an approved EIS fund?
What is an approved EIS fund?
An EIS fund is a managed investment vehicle that raises finance from individuals for the purpose of investing in select EIS-eligible ventures. ‘EIS’ stands for Enterprise Investment Scheme, an HMRC-run scheme that helps younger, higher-risk businesses raise finance by offering investors generous tax reliefs.
What is a knowledge intensive fund?
Knowledge intensive companies are those that are carrying out research, development or innovation at the time they are issuing shares, and investing in them provides certain tax advantages for investors.
What is a knowledge intensive company for EIS?
Knowledge Intensive Companies (KICs) are companies that are carrying out research, development or innovation at the time that they are issuing shares. They have a special status under EIS, and can raise more EIS investment, more flexibly, than non-KIC companies.
What is EIS certification?
Once ECI staff have completed the requirements of this training they receive the Early Intervention Specialist (EIS) credentialing. This certification requires yearly Continuing Education Units or CEUs to stay active with the state. The services provided by an EIS is billed as Specialized Skills Training or SST.
How does EIS funding work?
How the scheme works. EIS is designed so that your company can raise money to help grow your business. It does this by offering tax reliefs to individual investors who buy new shares in your company. Under EIS , you can raise up to £5 million each year, and a maximum of £12 million in your company’s lifetime.
What is EIS income tax relief?
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are UK government schemes designed to help smaller higher-risk trading companies raise finance, by offering a range of tax relief to investors who purchase new shares in those companies.
How long has time been running business relief solutions?
TIME:CTC targets a return of between 3 and 4.5% per annum and has one of the longest track records in its sector, having been running for over 25 years.
What is EIS tax relief?
When can I claim EIS?
You will normally claim EIS tax relief when you complete your tax return. You will be asked some information which is included in your EIS3 certificates. These are certificates you receive from each of the companies you invested in, typically a few months after the investment.
Who can claim EIS tax relief?
An investor will normally claim their EIS tax relief when they complete their tax return. Most of the information you need will be on the EIS2 certificate. However, when investing in an EIS fund, you will receive usually one EIS2 certificate for each of the fund’s underlying companies.
How are tax reliefs available under the EIS?
The EIS rules provide for tax reliefs to be available for investment made by individuals through nominees, including where the nominee is an investment fund manager. If a fund manager wishes to, it can seek approval for its investment fund under section 251 ITA 2007, so that the fund is an “approved knowledge-intensive fund” (“approved KI fund”).
What are the new rules for EIS approved funds?
Legislation will be introduced in Finance Bill 2019 to amend the requirements for an EIS approved fund in section 251 ITA 207. The rules will be amended to introduce an ‘approved knowledge-intensive fund’ that will: require the funds to focus on investments in knowledge-intensive companies
How is an investment fund approved by HMRC?
EIS: income tax relief: supplementary and general: approved investment fund as nominee ITA07/S251 The managers of an investment fund may, if they wish, apply for the fund to be approved by HMRC. Approval carries certain limited advantages, which apply in relation to income tax relief only.
Can a fund manager issue form eis5 without HMRC authorisation?
A Fund manager must not issue form EIS5 without HMRC’s authorisation. Fund managers wishing to enquire about the circumstances in which approval may be given should contact HMRC, Business, Assets and International, CT Innovation and Growth Team (CTI&G): or by email Venture Capital Schemes Policy at: [email protected]
