Tax benefits depend on the individual circumstances of each investor and may be subject to change in the future.
John Glencross, Chief Executive of Calculus, is quoted in City AM, speaking about how EIS can mitigate inheritance tax.
Inheritance tax (IHT)receipts for January 2023 totalled £578m up from £443m in the same month a year ago, according to HMRC figures.
It takes the total inheritance tax take for the 2022-23 Financial Year to date to £5.9 billion, £853 million higher than through the same period last year.
The total IHT take for 2021-22 – the last full financial year)- was £6.1bn, meaning this year is £178m short of that.
John Glencross, Chief Executive and Co-Founder of Calculus, said: “Inheritance tax (IHT) receipts will continue to remain high given the freezing of IHT thresholds for two more years.
“One area that advisers and investors could consider helping mitigate against IHT is by investing in an Enterprise Investment Scheme (EIS), as full inheritance tax relief is provided, for the life of the investment once the shares have been held for two years. Tax benefits depend on the individual circumstances of each investor and may be subject to change in the future.
“An EIS Fund provides investors with the opportunity to not only benefit from the diversified, strong performing and tax efficient nature of its products, but to also support innovative UK companies with a societal purpose and impact with at least 80 per cent of the fund’s capital invested into businesses carrying out research and development to create new intellectual property.” Past performance is not indicative of future performance. Tax benefits depend on the individual circumstances of each investor and may be subject to change in the future.