Lifting off

Jacqueline Kimber considers the options for businesses to take advantage of tax reliefs available 

Encouraging investment in unquoted trading companies has been a theme in many recent and not so recent Budgets. On the one hand, there is the vastly complex but comparatively generous Enterprise Investment Scheme, and more recently the Seed Enterprise Investment Scheme, both of which can be attractive for those willing to risk their capital with minimal, if any, day to day involvement in the business. At the other end of the scale there is Entrepreneurs’ Relief which, until 6 April 2016, was the principal capital gains tax relief available to holders of shares in unquoted trading companies (reducing the rate of tax to 10%).