The Lemon Fool

Hi

First post on the Lemon fool ( I think) but I have been a long time lurker and came here when the UK TMF boards shut down.

For mitigation of tax liability I have just been advised by my accountant to think about investing in an EAIS. This is one option mooted, the other being the purchase of an EV car before the end of the tax year and the usual stuff it into the pension.

The EIS is interesting because if I act quickly enough I can re claim some tax paid for the last tax year.

Are there any discussion groups or threads dealing with EAIS investments on the Lemon fool?

Thanks

DJR7635 wrote:Are there any discussion groups or threads dealing with EAIS investments on the Lemon fool?

Congratulations on your first post.

EIS investments do occasionally get discussed over at Venture Capital Trusts (VCT's) (including Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care), for example, as below:

viewtopic.php?t=11673

viewtopic.php?t=25177

DJR7635 wrote:The EIS is interesting because if I act quickly enough I can re claim some tax paid for the last tax year.
Thanks

That may not be as easy as it appears. If you're investing big money (like, five-figure sums per single, high-risk investment) then maybe look for your local Angel network and see what the professionals say. Otherwise you're down with us mere mortals, and will often have little control over the timing (for tax purposes, at least) of an investment:
- with a managed EIS fund they'll invest your money over a period, which might easily span more than one tax year.
- with crowdfunding investments there's always a wait, often months, for Due Diligence between you committing and your investment going forward.
- with a direct investment, you're still at the mercy of your investee's timescales.

Bottom line: acting quickly enough is possible but may imply quicker than you think! It would likely have been impossible within the timescale of February when you asked to the end of that tax year. Indeed, I rather suspect that these delays are precisely why EIS rules permit you to backdate relief.

I expect you know this, but beware the tax tail wagging the investment dog.

Where did you end up with this - what did you invest in?