

Tax relief – Free money for UK investors - heeton
http://www.seedrs.com/seis_eis_tax_relief

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heeton
I realise the title is a little provocative, but I was having a discussion
with a friend recently who eschewed these kinds of government schemes in
favour of more traditional investments. (And they weren't risk averse, this
was loseable money that they wanted to maximise potential return on)

My point was: for UK-based investors with small pots of money, these schemes
basically give you free money (if you only invest up to the limits for tax
relief). While, yes, they are much riskier in terms of company sucess/failure,
the scheme negates most of the real risk and removes taxation on the rewards.
The government is basically hedging your bets.

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walshemj
Is your friend not a UK taxpayer? Giving up tax relief is 99.999% never a good
idea.

If your a higher rate taxpayer after maxing out your ISA (£15k) then EIS ,
SEIS and VCT's are an obvious no brainer for a home with your cash.

For non uk readers an ISA is a tax free wrapper which you can put cash, shares
and some other assets which is then tax free both for income and CGT.

