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Taxes represent an expensive headache for investors and can significantly impact investment returns. As a result, an increasing number of UK investors are now prioritising more tax-efficient investment opportunities, which is especially crucial when operating within a higher tax bracket.
Helping to fuel a range of entrepreneurial ventures and contributing to economic development, Westbrooke Associates is the brokerage driving investment to support growth in cutting-edge, breakthrough companies currently in the revenue-generating phase.
Specialising in a range of investment opportunities, including the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS), these asset classes are UK government initiatives that are also designed to provide investors with an astounding range of tax reliefs.
Explore Tax-Efficient Investment Opportunities
Tax Relief with Remarkable Payoff Potential
When it comes to investing money in corporate equity, it’s important to identify stakeholder opportunities that align with your objectives, reach their full potential and yield maximum returns. Achieving prosperous results requires portfolio diversification, a practical approach, an intelligent risk strategy and informed decision-making.
Although tax-efficient investing in emerging enterprises comes with inherent risks, it does offer the opportunity for remarkable payoffs and substantial returns. However, securing your success involves choosing a sustainable business model with a product or service that you genuinely understand.
Launched some 29 years ago, in 1994, the Enterprise Investment Scheme (EIS) has become a well-established, tried and tested UK investor staple. The ensuing Seed Enterprise Investment Scheme (SEIS) was introduced in 2012 as a complementary measure to EIS.
Although both schemes share a common objective to stimulate investments in early-stage, as small and medium-sized unquoted trading companies, the distinction lies in the type of companies these schemes encompass and the extent of tax relief they provide.
Westbrooke Associates Holds A Prevailing Track Record
Representing over 200 years of experience, with backgrounds in the financial districts of London and Gibraltar, the independent agents and compliance executives at Westbrooke Associates have a prevailing track record for recognising disruptive early door opportunities in the most stable economic cycle sectors.
Alongside addressing the specific challenges that early-stage companies encounter when seeking investment, Westbrooke Associates connects investors with the best investment products to meet their needs, helping to create a diverse portfolio.
Why Westbrooke Associates Supports EIS And SEIS?
One of the biggest benefits of investing in early-stage, ‘higher-risk’ companies is the potential for high returns. With attractive pricing and the possibility of substantial rewards and enticing tax reliefs, EIS and SEIS offer investors the opportunity to reap returns multiple times over. Moreover, such investments contribute to job creation, foster innovation and lay the foundations for the next generation of remarkable, fast-growth companies. As such, the appeal of these government-backed schemes is evident.
The EIS (Enterprise Investment Scheme) targets medium-sized startups that have been trading for less than seven years, with fewer than 250 employees and gross assets under £15 million. Investors can contribute up to £1 million per tax year and receive a remarkable 30% tax break.
On the other hand, SEIS (Seed Enterprise Investment Scheme) is tailored to early-stage companies employing fewer than 25 individuals, with less than three years of trading experience and gross assets under £350,000. Investors can contribute up to £200,000 per tax year and receive an extraordinary 50% tax break.
Additionally, any profits from share sales after three years are exempt from Capital Gains Tax. Utilising SEIS offers a more substantial tax incentive for eligible investors and both SEIS and EIS can be used together.
Reduce Your Tax Burden and Optimise Your Financial Gains
Under both SEIS and EIS, any profit arising from the sale of shares after three years is entirely exempt from Capital Gains Tax (CGT), which is the tax levied on the gain made from selling or disposing of an asset that has increased in value. Welcome news indeed, considering the UK’s Capital Gains Tax allowance was reduced by 50% on 6th April 2023, from its current rate of £12,300 a year. What’s more, Capital Gains Tax will be further reduced in April 2024, by half again, to a yearly total of £3,000.
Similarly, holding shares for a minimum of two years under both SEIS and EIS also exempts investors from inheritance tax. Furthermore, in the event of selling SEIS/EIS shares at a loss, investors have the potential to offset the loss against their Capital Gains Tax by utilising loss relief.
And the best news? Whether your aim is saving for retirement or making money, by engaging in tax-efficient investing through EIS and SEIS, you can effectively reduce your tax burden and optimise your overall financial gains.
Tap into Specialised Insider Knowledge
Despite rising inflation, geopolitical uncertainty and an underperforming economy, turbulent times are creating opportunities. Providing a wide selection of EIS and SEIS investment opportunities in sustainable sectors that bear up under the pressure of a downturn, these sectors include lifestyle, transport, well-being, entertainment, the environment and technology platforms. Each opportunity represents areas that consumers still need and still want to spend money on.
With specialised financial expertise and the essential skill sets required to succeed, Westbrooke Associates diligently connects investors with the right opportunities to support their financial objectives. By staying abreast of financial news and economic trends, the brokerage consistently seeks out innovative, fresh opportunities through meticulous research, in-depth market understanding and strategic independent thinking.
To determine your investor eligibility criteria, explore early-stage investment opportunities, or gain further insights into SEIS and EIS, visit Westbrooke Associates.