Ideal Enterprise Investment Scheme Shareholder

Rich Uncle Warren and Big Brother BillFor most small companies, their ideal EIS shareholder is someone who would have been making the investment anyway. Friends and family often lend cash to budding entrepreneurs, sometimes with little expectation of the money being repaid in full. Since 1983, successive Governments have endorsed the concept of tax relief for 'small-scale venture capital' - through Enterprise Investment Schemes. The latest increase to 30% Income Tax relief has stimulated a huge renewed interest in E.I.S.

If your Rich Uncle Warren or Brother Bill pay UK tax, they get 30% back via an Enterprise Investment Scheme!

Accolade Office - Enterprise Investment Scheme opens to investors - 2015

Phone 0141 774 4600 to check availability of this 30% tax saving EIS

It is comparatively simple for a company to apply for Enterprise Investment Scheme approval, provided the firm is carrying on a qualifying trade. If successful, there is little extra work involved in recording share purchase and requesting the document from Revenue & Customs that allows the new investor to immediately claim 30% Income Tax relief on the sum invested by completing their Self-Assessment form.

Repayment by HMRC is usually prompt but it is prudent to set this tax rebate aside.
Provided that the shares are held for at least 3 years and the company continues to qualify, tax relief cannot then be withdrawn. Keep it safely invested till that day.

For EIS investments to be realised there must be a buyer for the maturing shares. It is permissible for employees (NOT Directors) of the company to purchase these.
An increase in the value of shares held during this time is free of Capital Gains Tax.

Even a failed EIS investment attracts favourable Income Tax and CGT treatment; tax payers @ 40% risk 42% of the sum invested; those on 50% tax only 35%. An E.I.S. loss can be set against C.G.T. liability or Income Tax due in year of disposal.

No amount of tax 'sweetener' can turn a bad investment into a good one...only lessen the bitterness when it turns sour. Avoid having your tax relief withdrawn. Choose a company that understands and complies with complex E.I.S. regulations. Whilst there can be no pre-arranged agreement for realising mature EIS shares, it will be some consolation to know that Accolade has a viable investor exit strategy.

Ideal Accolade Office Europe EIS Shareholder

Until this year, Accolade had used its E.I.S. for friends & family as described above.
Our expansion plan will now be helped by additional finance from external investors.

In effect, our E.I.S. is an investment in a NEW venture; one that happens to have been trading for more than 35 years! So...there's much less chance of 'cash burn'.

Cash burn drives investors to drink

Cash burn...when start-up costs go up in smoke...a nightmare for investors

Now that our website development program is complete, it's time to capitalise on the time, effort, E.I.S. and employee's money that has been invested since 1980.

Our transition from being a long-established 'little local' office supplies dealer into an international internet trader would be greatly enhanced if expertise came along with an investment of the appropriate value to exploit this outstanding opportunity.

An E.I.S. permits an investor to participate in running a business and to receive reasonable remuneration for this. Accolade would welcome relevant assistance when directed towards achieving profitable returns and growth in share value.

An investor cannot be 'connected' to a company by owning more than 30% of it. A trading relationship is allowed, providing transactions are not on preferential terms. 

For instance, an investor purchasing office products for their business could buy from a stationer in which they hold less than a 30% shareholding. This could be on 60-day credit, or even a consignment stock basis, if those terms were available to other customers. Prices paid would have to be competitive to ensure compliance. 

It is therefore possible for a minority shareholder to be paid as a Non-Executive Director of a supplier to their other business...and to benefit from EIS tax reliefs.

Accolade has identified and can recruit employees of the calibre to drive growth. Our preference is for a shareholder to achieve even greater return on investment.

Our aim is not to 'kill two birds with one stone' (we like birds!). More to merge the characteristics of a wise owl with the acquisitive instincts of a magpie (an OwlPie?) Jack Daw would be good...intelligent and a collector of useful objects. The jackdaw returns to the same nest each year, building on last year's successful construction.

Cash investors are, of course, still welcome and full consideration will be given to ALL shareholder suggestions that would increase dividends or enhance share value.

An Enterprise Investment Scheme is by far the best way of exploiting tax breaks

^-<-< Use this Form or the 'Contact Us' page for more information about our EIS

Email a link to this page 'E.I.S. Investor' 

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EIS relief takes the edge off your tax bill

Inaccessible Pinnacle 
Sgurr Dearg 
Isle of Skye 

Photo taken by Bill Gray, 
Managing Director @ Accolade, 
Sunday May 1st 2011

"He either fears his fate too much,
Or his deserts are small,
That puts it not unto the touch, 
To win or lose it all."

Extract from 'My Dear and Only Love' written in 1643 by James Graham, Marquis of Montrose. 

Original text & images are Copyright to Accolade Office- europe Limited © 2015
Original images have been pixellated with a pattern that makes them identifiable as the unique copyright property of Accolade Office- europe Limited. © applicable within all legal jurisdictions, worldwide.

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An Enterprise Investment Scheme is an appropriate venture for UK income tax payers who can self-certify being a sophisticated investor.
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