Employment-Related Securities and Unlisted Companies is written with mainly private or unlisted companies in mind and explains in depth how the employment related securities (‘ERS’) rules in ITEPA 2003, Part 7 apply to employee share acquisitions generally, including: Securities as earnings Restricted or convertible securities Securities acquired for less than market value Securities disposed of for […]
Publications
EIS And SEIS Applications – Not Quite ‘Catch 22’
The ‘risk to capital condition’ introduced by FA 2018 in relation to EIS/SEIS investments and the updated HMRC guidance concerning applications for advance assurance and compliance statements, create obstacles which require careful management, as Ken Moody explains. The risk to capital condition at s 157A(1)/s 257AAA(1) ITA 2007 is met if it is “reasonable to […]
A Change Of Emphasis For Venture Capital Schemes?
The tax reliefs available for EIS, SEIS and VCT investments are generous and obviously not intended to be used for tax avoidance purposes. Changes to the venture capital schemes in FA 2018 are aimed at focussing reliefs on growing and innovative business and excluding activities deemed to be ‘lower risk’, as Ken Moody explains. Outline […]
Wind Up Woes?
Getting money out of a company without paying income tax, short of winding up, has always been difficult, but even the automatic capital treatment of distributions in winding up may now be problematic in some situations. Ken Moody offers a brief explanation. FA 2006 inserted a new s 396B (‘Distributions in a winding up’) into […]
Not Very Assuring: New Procedures For Advance Assurance For Venture Capital Investments
Changes to the procedures for applying for Advance Assurance (‘AA’) for proposed EIS and SEIS investors are intended to deter ‘speculative’ applications, but, along with the ‘risk to capital’ condition introduced by FA 2018, may also create a ‘Catch 22’ situation for some start-ups, as Ken Moody explains. The main procedural change is that it […]
