Benefits Of Owning EIS Shares

Being an investor you may look around for some lucrative investment opportunities that may offer you some profit returns or other types of benefits. In this respect, making an investment in EIS is also a great way to get benefited in a number of amazing ways. The EIS or Enterprise Investment Scheme is a great opportunity for such investors who wish to get benefited by getting some sort of tax relief and also get something in return from the investment.

Basically, the investors are required to make investments in smaller companies, startups or other entities that are in need of capital investment. It is beneficial for both the parties as the smaller companies get the funds they need and the investors gain in terms of federal tax exemptions and also get a chance to earn something worthwhile by way of their investment in the shares of the given company or firm. Some investors are quite curious to know about the key benefits of owning a share in EIS investment. Let us have a look at some of the major benefits.

Tax Reliefs On Your Income

By opting to invest in EIS shares, you may get benefited in terms of tax reliefs on your income. It means you may save the money that is otherwise spent in paying up the taxes levied on your income. It really proves to be beneficial for you in the long run.

Growth Of Your Investment In A Tax-Free Manner

By opting to make investments in some of the most promising firms or small companies around in the form of EIS, you may look forward to the incredible growth of the capital thus invested and that too in a tax-free manner. The reason is quite simple: the investors are mostly given relief on the income earned by them through such investments. Again it is profitable for you.

Safety Against Losses As Well

In case, there are certain losses faced by the firm or start-up in which you have made EIS investments, you may counterbalance the losses against the capital gains taxes. Thus the safety of your investment is assured in all respects.

Benefit From Other Types Of Tax Exemptions

Yet there is another great benefit of making investments through EIS shares in smaller companies or firms. It is because the concerned investors are exempted from other types of taxes as well. As an instance, you may get benefited in the form of inheritance tax relief. This in turn allows you to save money and hence remain on the safe side.

By being an EIS investor, you may also get benefited in amazing manners as explained above. You just need to choose the most promising companies that may eventually grow and step ahead on the path of success and development.