Tax Advice: Investing in knowledge-intensive companies

The annual limit for individuals investing in knowledge-intensive companies (KICs) under the Enterprise Investment Scheme (EIS) will be increased to £2 million, as announced in the Autumn Budget, provided that anything above £1 million is invested in KICs.

In addition, the annual EIS and Venture Capital Trust (VCT) limit on the amount of tax-advantaged investments a KIC may receive will be increased to £10 million.

The permitted maximum age rules will also be amended to allow KIC to use the date from which its annual turnover exceeded £200,000, instead of the date of its first commercial sale, when determining the date from which the end of the initial investing period is calculated.

For EIS the changes will apply to shares issued on or after 6 April 2018 and for the VCTs the changes will apply to new qualifying investments made on or after 6 April 2018.

Our experts at Beavis Morgan can ensure your tax affairs are as efficient as possible to fit your circumstances. In addition, we can look ahead to retirement and inheritance tax planning.

For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.