Despite widespread coverage of government tax relief schemes for small business investors, new research conducted by YouGov for Crowdcube shows that only 13 per cent of people that invest in stocks and shares are aware of tax relief schemes such as the Enterprise Investment Scheme (EIS) and The Seed Enterprise Investment Scheme (SEIS).How much do you know? The research shows that 12 per cent of British people have bought stocks and shares in the last two years, 2 per cent invested in mini-bonds, 3 per cent in unit trusts, 4 per cent in mutual funds and 72 per cent didn’t invest at all. Of those who have invested, only 13 per cent are aware of the governements (frankly) generous tax relief schemes. More people are investing in small businesses, boosted by alternative investment options such as crowdfunding, and while many investors are benefiting from tax relief schemes it seems that not all investors are aware of them,” says Luke Lang, co-founder of Crowdcube “More needs to be done to make people aware of potential tax relief on their investments to boost British small business. So, in case you weren’t aware of what was on offer from the government, here are two of the most generous tax relief schemes for investors: Enterprise Investment Scheme EIS has been around since 1994 and is designed to encourage investments in smaller companies that are not listed on the stock exchange. It provides an initial 30 per cent tax relief on investments up to 1 million (so 30 pence in every 1 invested). Relief from Capital Gains Tax and Inheritance Tax is also offered. Seed Enterprise Investment Scheme SEIS was launched in April 2012 to further stimulate entrepreneurship and was a key component of the governments plans to kick-start the British economy. SEIS gives 50 per cent income tax relief and, as with EIS, there is no capital gains tax to pay on profits and no inheritance tax. There are additional potential tax breaks from downside protection that can make investment relief as high as 86.5 per cent of the total investment value, therefore taking the sting out of any high-risk investment.
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