Graphene Composite GC is a nano-materials technology company that combines graphene, aerogels and other materials to produce a range of composites that are extremely light, and yet extremely resistant. There are many applications for this technology. The most obvious one might be the production of a light bulletproof vest that fits in a school bag. GC used the Enterprise Investment Scheme to raise funds in this round, which meant that investors were potentially entitled to tax relief. If you need a refresher on the various investment schemes available to start-ups and early-stage companies, look no further!
|Genre:||Health and Food|
|Published (Last):||12 April 2007|
|PDF File Size:||12.3 Mb|
|ePub File Size:||3.26 Mb|
|Price:||Free* [*Free Regsitration Required]|
Graphene Composite GC is a nano-materials technology company that combines graphene, aerogels and other materials to produce a range of composites that are extremely light, and yet extremely resistant. There are many applications for this technology.
The most obvious one might be the production of a light bulletproof vest that fits in a school bag. GC used the Enterprise Investment Scheme to raise funds in this round, which meant that investors were potentially entitled to tax relief.
If you need a refresher on the various investment schemes available to start-ups and early-stage companies, look no further! Here is a description of the main venture capital schemes. How do I claim tax relief on my investment?
You will notice that there is a delay between the moment your investment is completed and the moment you receive the form. The company you invested in will issue the form but cannot do so until it has been trading for at least 4 months.
Then, you must remember that the company is a start-up and resources are scarce. There is probably only one finance director in a position to issue the certificates to a large number of investors. As a result, it may easily take 12 weeks for you to receive the form. Be patient and do not stress out. Remember that you do not need to receive the form prior to the end of the tax year to claim tax relief. If you do not hear from the company or the crowdfunding platform within 6 months of the closing of your investment, then reach out to them to sort out the matter.
There might be a simple explanation for the delay. Typically, there will be one certificate for each company the fund invested in. Step 2: What tax relief can you claim? After you receive the certificate, it is time to determine what tax relief you want to claim.
This involves understanding the various schemes and their respective benefits. Income Tax Relief Below a summary of the income tax relief available for the various schemes. Therefore, the date of the certificate is irrelevant.
Obviously, you can only claim tax relief against the amount of Income Tax to be paid in the UK. It is incredibly important to claim income tax relief as soon as possible. First, the sooner you claim, the sooner the money will be in your account. Second, you cannot carry forward unused Income Tax Relief to future tax years. Third, failure to claim Income Tax Relief may cause issues in claiming Capital Gains tax relief in the future. There are rules that also apply in specific circumstances.
You should consult a tax advisor. For instance, you may be able to defer capital gains tax if the proceeds of an asset disposal are used to invest in a company that qualifies for EIS deferral relief. Also, when you sell an asset and invest the gains into a company that qualifies for SEIS, you will not have to pay Capital Gains. There are conditions to obtain the tax relief so do carefully check the rules to ensure that you qualify. Unless the amount of tax relief received is greater than the expected amount of income tax to be paid, which is highly unlikely to happen, there really is no reason to wait.
Step 3: submit the tax relief claim There are three options to submit the tax relief claim. The form EIS3 will be annexed to your tax return.
The tax advisor will incorporate this in your tax return. If your advisor has already filed your self-assessment, do not worry. He or she will amend the tax return and re-send the entire filing for your review. You may be asked to provide your bank details if HMRC owes you money as a result of the relief.
Option 2: claim tax relief online The second option is to claim online when completing your self-assessment. Provide details for each investment. This should be sufficient but feel free to include other references. You must however keep it in a safe place if HMRC wants to see it.
Option 3: claim tax relief on your paper tax return The third option is to claim tax relief through your paper tax return. Old school but it still works! The details are the same as if you were filing online.
You will need to fill out pages 3 and 4 of the form. I have never used this method to claim for tax relief. Actually, for a while, I wondered why this option was given as most people would usually claim as soon as possible.
There are, however, specific situations where sending the EIS3 Form itself might be more relevant. This is not tax advice and those situations tend to be more complex, and therefore would require tax advice. Claiming tax relief against a previous year: if you want to carry-back some of the relief because you did not receive the EIS3 form on time in the previous tax year PAYE adjustment: if you receive the EIS3 form early in the tax year, you may be able to receive the tax relief through an adjustment of your PAYE code Deferral relief: if you want to claim deferral relief and income tax relief a more unusual case No self-assessment: if you are not required to file for self-assessment, then you will need to send the completed EIS3 form.
Step 4: receive the tax relief The tax relief claimed will reduce the amount of tax that must be paid to HMRC. If you owe no taxes or have already paid too much income tax, then HMRC will repay the excess directly into your bank account or by cheque.
Personally, I am only familiar with the bank account repayment option. None of the above constitutes tax advice. You should consult a professional. Hopefully, this will be a useful guide and will help you in asking the right questions!
HS341 Enterprise Investment Scheme - Income Tax relief (2017)
It usually takes HMRC around three months to process this application. The date the fund closed will be shown on the form EIS5 which the fund manager gives you. How to claim EIS tax relief. This does not apply, subject to certain conditions, at any time when the only shares issued are the original subscriber shares. Manchester ripe for business investment says Chief Secretary to the Treasury 23 November Cash generative with strong profit marginsExperienced and passionate management teamScalable low-cost growth modelTarget return 7. You can attach these forms to your tax return to claim relief if you are eligible to do so.
EIS3 FORM PDF
The Enterprise Investment Scheme EIS is a UK government scheme that helps younger, higher-risk businesses raise finance by offering investors generous tax reliefs to investors. The EIS has been around since , so is a well-established part of the UK tax landscape for investors. The success of this scheme led to the introduction of the Seed Enterprise Investment Scheme SEIS , which promotes investments in even earlier-stage and therefore riskier companies through even greater tax relief. In addition, the availability of tax relief depends on the company invested in maintaining its qualifying status. What is EIS tax relief? EIS tax relief is a UK tax relief designed to encourage investment into younger, higher-risk companies. The shares must be held for at least three years from the date of issue — tax relief will be given at the outset, but can be clawed back if you dispose of the shares before the three years are up.