Article: Enterprise surprises Changes to capital gains tax means enterprise schemes are more attractive, says Stephen Spurdon. But make sure you take advice

A tax break that means capital gains may be taxed at 18 per cent rather than 40 per cent is bound to be tempting, which is why Enterprise Investment Schemes (EIS) have attracted the attention of investors.

Changes to the capital gains tax (CGT) in the Budget, mean investors with capital gains are being offered a chance of making a substantial reduction in their tax liability.

Gains arising on disposals of any assets can be deferred against subscriptions for shares in any qualifying EIS company, tax on those gains becoming payable on disposal of the EIS shares. With an annual subscription limit on EIS investment of pounds 400,000 (rising to pounds 500,000 on April 6) this should take in ...

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