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Learning, Sharing, and Teaching => Investor Alley => Topic started by: frugledoc on May 03, 2015, 10:27:48 AM

Title: EIS
Post by: frugledoc on May 03, 2015, 10:27:48 AM
I've put a bit of money into EIS in the UK and wondered what the board thought about these investments.

They are start up companies but the government gives 30% tax relief  on the investment (against higher rate tax rate of 40%), no tax on gains or dividends, and tax relief on 60% of the invested amount (initial amount minus tax relief) if the company goes bust (which a fair amount will).

So they are very high risk investments but the tax reliefs take a lot of the risk into account.

So far I have invested in a couple of companies but higher amounts than sensible as they are companies that I have used and think are very good at what they do but want to spread smaller amounts around.

Obviously should be just a small amount of the portfolio