Tax-efficient investing in companies

9 January 2012

Investing in smaller businesses can often be viewed as risky, however there can be significant tax incentives for investing in some companies, which helps to mitigate economic risk.
 
For those companies looking for alternatives to bank funding, the Enterprise Investment Scheme (EIS) and venture capital trusts (VCTs) are options well worth exploring.  In relation to the EIS, tax relief is potentially available to owner-managers of businesses, as well as outside investors.
 
In this guide by Smith & Williamson we examine the EIS and funding from VCTs, which can be an important source of financial support for smaller businesses.