We have pre-approval for the EIS and SITR tax relief schemes.
This is really great news which means that qualifying investors will be able to apply for tax relief on their investment in The Thorold Arms (CBS) Limited once the business is able to issue the appropriate certificate.
This is a government give-away designed to encourage tax payers to invest in certain types of business by effectively making that investment out of untaxed income.
In other words, 30% of your investment could be rebated by Her Majesty’s Revenue & Customs (HMRC) from the tax you have already paid. So – invest £1000 and get £300 back from HMRC (as long as you have paid at least £300 in tax).
With interest rates at historic lows, this is a way to get your money to work a bit harder for you. It is hoped that the business will pay a reasonable annual rate of interest on investors money, so the initial 30% bonus could be a clincher!
The details are available from the appropriate government web sites:
Social investment tax relief
Enterprise Investment Scheme
The letters from HMRC are reproduced below: