These alternative investments were introduced to provide individuals with incentives to invest in small, unquoted companies to boost the UK economy in return for generous tax breaks.
Traditionally alternative investment strategies have been viewed as risky, however, over recent years products have been developed which provide an element of capital preservation, thus increasing their popularity and reducing risk.
Typically, tax reliefs are:
Please see the chart below for further details as at the 2015/16 tax year:
|Venture capital trust||Enterprise investment scheme||Seed enterprise investment scheme|
|Income Tax Relief||30%||30%||50%|
|Maximum annual investment||£200,000||£1,000,000||£100,000|
|Minimum holding period||5 years||3 years||3 years|
|Capital gains tax deferral relief on investment||No||Yes||No|
|CGT relief on disposal of investment||100%||100% after 3 years||100% after 3 years|
|Loss relief||NO||Yes, at taxpayer’s marginal rate on net cost of investment after tax relief.||Yes, at taxpayer’s marginal rate on net cost of investment after tax relief.|
|Inheritance tax relief (IHT)/business property relief||NO||Yes, after 2 years if qualifying criteria are met||Yes, after 2 years if qualifying criteria are met|
Lycetts advisers use detailed knowledge of inheritance tax relief and exemptions to help...read more
With the right advice and application, trusts can help reduce inheritance tax liabilities...read more
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Read more about developments both in insurance and at Lycetts.
July 21, 2017
Insurers are reacting to the number of claims due to fire which have devastated both bale stacks and the barns in which they are kept. As a result the terms of many fire insurance policies have changed with a greater onus on farmers to take steps to reduce the risk of fire. Failure to do this may result in an invalid claim.read more
July 9, 2017
Lycetts is the headline sponsor for the 2017 Festival of Hunting for the second year running as part of our ongoing partnership with the East of England Agricultural Society who organise this prestigious event in the hunting calendar.read more