Company 1 failsYou receive £3,000 in income tax reliefYou receive £3,150 income loss relief(at risk capital multiplied by your tax bracket e.g 45%)Real loss = £3,850(£7,000 at risk capital minus £3,150 income loss relief)
Company 2 breaks evenYou receive £3,000 in income tax reliefAfter three years you sell your shares for £10,000Gain = £3,000(£0 profit from sale, plus £3,000 income tax relief)
Company 3 doubles valueYou receive £3,000 in income tax reliefAfter three years you sell your shares for £20,000You owe no capital gains tax on profitGain = £13,000(£10,000 profit from sale, plus £3,000 income tax relief)
|Number of employees||No more than 25 employees||No more than 250 employees|
|Trading time||Trading for less than 2 years||Trading for less than 7 years (or less than 10 for knowledge-intensive companies)|
|Gross assets||Under £200k in gross-asset premoney||Under £15M in gross-asset pre-money|
|Funding limit||Lifetime SEIS funding limit of £150k. No previous investment from a VCT or EIS||Lifetime funding amount that can be raised under SEIS, EIS, VCT is £12M (£20M for knowledge intensive companies)|
As with all investments, the offers shown on this site will place your capital at risk: investors may not get back the full amount invested. The investments listed are in unlisted companies which are likely to be harder to value and sell than quoted shares.
Please note that the availability of EIS and any other tax relief referred to is dependent on each investor’s circumstances. Tax reliefs are also subject to change and rely on the company in question meeting qualifying criteria.
Where reference is made to past performance or future performance please note that this should not be taken as a reliable indicator of future results. CoInvestor does not provide investment or tax advice, and information on this website should not be construed as such. Potential investors should seek specialist independent tax and financial advice before investing in any alternative investment.