Horwath Bastow Charleton provides advice to companies seeking to use the Business Expansion Scheme as a means of raising finance. We also advise individuals seeking to minimise their tax exposure through the use of investments qualifying for this relief.
The Business Expansion Scheme is a tax incentive scheme allowing persons to invest in certain companies and to get tax relief based on the level of their investment. Each investor can obtain tax relief up to a maximum of 150,000 per year in respect of investments made on or after 1st January 2007 (31,750 in respect of investments made prior to 2007).
The minimum investment is 250. Any unused relief can be carried forward against the following years income (up to and including tax year 2013, when the scheme will expire).
The incentive is available to those who invest in unquoted companies in specified business sectors, including:
- certain manufacturing, service, tourism, research and development and plant cultivation companies,
- companies formed for the purpose of constructing and leasing advance factory buildings, and
- certain music recording activities.
A company seeking investment can raise up to a maximum of 2 million under the Scheme (of which the maximum that may be raised in any one 12 month period is 1.5 million) from a number of separate investors. The companies seeking the investment must issue new share capital to their investors, and investors must hold on to this share capital for five years.
For further information about our Business Expansion Scheme department please contact:
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