(Newswire.net — May 15, 2020) — Qazikoo Bank is gearing up to set the digital banking world ablaze when it premieres in late September. A recently announced feature will be the ability for anyone to invest through the Enterprise Investment Scheme (EIS). EIS is a series of UK tax reliefs launched in 1994 designed to encourage investments in start-up companies. This act has been a landmark in promoting small business growth and has helped many entrepreneurs get the cash injections required to grow their companies. The partnership between Qazikoo and EIS will certainly be a fruitful endeavour to help the challenger bank not only succeed, but flourish!
Several key features of EIS include 30% upfront income tax relief, capital gains tax deferral and tax deferral for investment loss, all of which are military grade secure. These useful features can help rescue a small business when rocky patches come up along the journey,which is really inevitable in the world of entrepreneurship. EIS helps level the playing field by making it possible for everyone to excel, not just the top 1% who already have tons of money in their pockets to fuel their start-ups through difficult times.
If you invest through a business angel network or an equity crowdfunding website, the network or website should help you with the paperwork around getting your EIS or SEIS benefits.
You can also invest in a company you know, provided you are not considered to be connected to it by HMRC. Connection means being a partner, employee, director, or having a share of 30 per cent or more. If you do invest in a company you have come across privately, make sure you buy the shares after the company has been set up, otherwise EISwon’t apply.
So why does the government provide such incentives? The main attraction is the contribution small businesses make to the UK economy: they create jobs and generate tax.
For investors, the main appeal is the chance to invest in the newest and most exciting businesses with the added benefit of tax relief:
- Up to 30% income tax relief, either against this year or last year’s tax bill via a carry back facility.Up to 30% income tax relief
- Ability to defer capital gains made elsewhere, by investing these in an EIS
- Tax-free growth – no Capital Gains Tax liability if your investment does well
- Loss relief – if an EIS investment does not work out, it’s possible to offset losses against income or capital gains tax
- Inheritance tax free, provided the EIS is held for at least two years and you still hold it on your death.
The tax advantages are significant, but you should make your decision to invest based on the merits of the investment itself, not the tax benefits. Tax rules can change and tax benefits depend on individual circumstances. To retain the tax benefits of an EIS investment you need to hold it for at least three years and the investment must remain qualifying.
Qazikoo Bank recognizes the value of this investment scheme and that’s why they want to bring its benefits to the masses. Anyone can take advantage of these EIS services! If you have any questions about the benefits of investing through EIS, you can ask any qualified Qazikoo representative and they will be happy to walk you through the process and explain the many benefits you can reap. In these uncertain times, Qazikoo recognizes that the ability to access investment relief services is more critical than ever.
About Author: Rima Chandra is a professional blogger and author. She writes for Newswire and her blog Qualitytechtalk.