A number of changes were introduced in the new budget. In particular with respect to private equity investment tax reliefs. Now is the time to invest in startups, with two options both very generous when it comes to providing tax relief both for income tax but also for capital gains tax (and especially for high rate tax payers who are the natural target for those schemes).
Enterprise Investment Scheme (EIS)
Here is a summary of the changes some subject to EU State aid approval being granted:
- The maximum annual amount that an individual can invest under the EIS will be doubled to £1m for 2012/13 onwards. There will no longer be any minimum investment; it was previously £500 in any one company.