Following the Budget yesterday, EIS investors are now allowed to ‘carry back’ income tax relief on their entire investment to the previous tax year. Before the Budget change, investors could only carry back the 20 per cent tax relief allowed on EIS investments up to a limited amount of £50,000. Now they can claim relief on up to £500,000, giving a potential carry back of income tax relief to the previous tax year of up to £100,000.
This change in legislation benefits those investors who missed the April 5th deadline to invest in Calculus Capital Approved EIS Fund 9. Investors can now invest in the Calculus Capital EIS Fund 9B, which is open for subscriptions until the 8th of May, and claim income tax relief in either the current tax year 2009/10 or carry back to the 2008/9 tax year.
EISs have attracted more investors in the past year following the change in capital gains tax from 40 per cent to 18 per cent, as investors are able to use an EIS to claw back tax already paid at the higher rate, reinvest it, and eventually pay it at the lower rate.
Although some were predicting more changes to legislation, we believe that 2009 could be a vintage year for Calculus Capital, as we are now able to cherry pick the best of the small companies seeking investment at attractive valuations for our EIS funds.
For more information on Calculus Capital EIS Fund 9B please click here.
