16:50 PM, 24th July 2015, About 6 years ago 2
If you’ve made any taxable capital gains this year, would you consider swapping the majority of your tax bill for shares in Property118 Portal Ltd if it was possible to do so?
Good news – this is entirely feasible!
Here’s how it works …
Due to completion of our crowd funding being SEIS conditional, you would get 50% income tax relief on your investment (regardless of what tax band you fall into).
If you have made a capital gain on the disposal of an asset and use the amount of the gain in making a SEIS investment into Property118 Portal Ltd you will not pay capital gains tax on 50% of the amount you invest.
Example; if a capital gain has already made of £10,000 (then ignoring the capital gains tax annual exemption) a capital gains tax liability of either £1,800 (18% basic rate tax) or £2,800 (28% hire rate tax) will arise. If the £10,000 capital gain is invested in SEIS shares in Property118 Portal Ltd then 50% of the tax is saved, i.e. £900 or £1,400.
The maximum tax relief that can be obtained if an SEIS startup succeeds is 50% income tax credit PLUS 14% (50% of 28%) capital gains tax relief = 64% tax relief.
After three years, no capital gains tax is payable on the future sale of the shares.
If the business were to fail then CGT loss relief could be claimed to reduce future CGT. This has the effect of increasing the tax relief by a further 18% or 28%.
If you decide to invest into Property118 Portal Ltd the outcomes are:-
1) we achieve our investment target
2) you swap the bulk of your tax bill for shares in Property118 Portal Ltd
Win/Win = happy days 😀
For more information please CLICK HERE
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Previous ArticleSurvey to influence post Budget BTL product development