We all want to keep our income tax free and the well known tax free savings plans such as Individual Savings Accounts (ISAs) provide some tax free income but these are subject to strict limits.
Did you know that there are a number of tax efficient investment schemes with HMRC tax incentives as Robyn Hughes our Tax Director explains.
The Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes encourage investment in small companies and in return offer tax incentives. As well as providing certain tax advantages HMRC actually give tax reducers or tax rebates of 20% in the case of EIS and 30% for VCTs. There are of course lots of conditions and the risk profile is greater than ISAs.
As part of our regular HSJ Helps seminars, we ran a recent seminar looking at the advantages and disadvantages of this type of planning and indeed how the risk associated in these investments can be minimised. These seminars were very well received and a number of our clients are now planning to invest.
In order to maximise the benefits of these schemes, investments should be made by 5April 2011.
If you were unable to attend our recent seminar but would like information on tax efficient investment schemes, then please contact me my details are below.
Tax Director HSJ Accountants
0845 365 1000