Finance and Accountancy Briefing
A guide to AIM UK tax benefits
Baker Tilly in conjunction with London Stock Exchange has aunched a fully updated and revised guide to tax benefits for AIM companies and investors.
This publication reflects the changes introduced as part of the Finance Act 2012, including a section on the newly introduced Seed Enterprise Investment Scheme, and is therefore applicable to all qualifying unquoted companies including start-ups - not just those on AIM.
Changes to the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) legislation introduced over the last two years to encourage investment in suitably qualifying trading companies - including those on AIM - are of particular interest at a time when companies are looking to diversify their funding sources.
Companies can now raise up to £5m a year under the risk capital schemes (previously only £2m in most cases), invest the funds for worldwide expansion under certain conditions (rather than solely in the UK), and have gross assets of up to £15m before investment and £16m after (previously £7m before and £8m after). Importantly investee companies must now have less than 250 full time employees (previously 50) and investors under the EIS can invest £1m per annum (husband and wife each) increased from £500,000.
Download this paper for further analysis.
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