Venture Capital Trusts (VCT) offer 30% tax relief on investments up to £200,000 which are held for at least five years.


Enterprise Investment Schemes (EIS) now offer 30% tax relief on investments up to £500,000 and upto £1m with effect April 2012 which are held for at least three years. It is also possible to defer Capital Gains Tax and investments will be Inheritance Tax-free if held for two years.


From April the new Seed Enterprise Investment Schemes (SEIS) offer 50% tax relief on investments up to £100,000 which are held for at least three years.There are also attractive Capital Gains Tax exemptions for investors and the investment will be Inheritance Tax free if held for two years.


These schemes have attractive tax reliefs, but typically require a high minimum investment and are often into smaller companies that carry a substantially higher degree of


investment risk and may be illiquid so aren’t suitable for everyone.


Pension contributions and higher rate tax relief


There is much media speculation about the possible withdrawal of Higher Rate tax relief. If circumstances permit and if within approved limits, contributions made in 2011/12 may be the last to attract higher rates of tax relief.


The end of the tax year will be rapidly upon us and you may feel this is a good time for a “Financial Health Check”, to discuss tax planning ideas with a member of our specialist tax planning team.


Speak to your Old Mill Planner if you’re not using these allowances or the pension allowances that have been discussed elsewhere. The above are just a few suggestions that may be of interest and there may be other opportunities for your individual circumstances.


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