Oxford Capital Infrastructure EIS - Clubfinance

Tax advantages and returnsThe investment isstructured to capture taxadvantages under theEnterprise InvestmentScheme.Tax advantages available under the EIS are:• 30% income tax relief up to a maximum investment of£1,000,000 per tax year (6th April to 5th April) per individual(£2,000,000 for a married couple).• Capital gains tax deferral of unlimited gains invested in qualifyingcompanies within three years before and 12 months after the dateof investment.• Tax free gains. There is no capital gains tax liability on gains onthe disposal of shares which have been held for three years in EISqualifying companies, on which EIS income tax relief has beenobtained.• 100% inheritance tax exemption after each individual investmenthas been held for at least two years, provided the shares are held atthe time of death.• Income tax carry back relief. Investors can claim income tax relieffor the tax year in which they invest in the underlying companies,as well as the tax year immediately preceding the investment.This enables the investor to claim tax relief in the period(s) mostadvantageous to him/her.• Loss relief (providing total tax relief of up to 65%). A loss on anyqualifying investment in the portfolio, irrespective of the overallperformance of the portfolio, can be offset by individuals againstincome of the tax year of loss, or the previous year, or againstcapital gains (including against the tax liability that arises on therevival of the deferred gain) of the tax year of the loss and futureyears.Benefits of EIS investmentWith Income Tax Relief at 30% and Capital Gains Tax (CGT) at 28% theinitial cost of an investment of £100,000 into an EIS qualifying company caneffectively be reduced by £58,000 to £42,000, assuming that an investorcan benefit from both reliefs. Investors should note that any CGT deferredwill re-crystallise on exit. Investors should note that tax legislation may besubject to change.8 | Oxford Capital Infrastructure EIS