Capital Gains Tax Exemption

There is no CGT payable on gains in respect of Investments made through a Fund (on which EIS Relief has been obtained and not withdrawn) where the Investments have been held for at least three years from the date of subscriptions or from the date of commencement of the EIS Qualifying Company's trade if later.

Example:

	£
Realised value of Investment after 3 years	80,000
Less initial Investment	(50,000)
Tax free gain	30,000

Capital Gains Taper Relief

Any capital gain which does not qualify for Capital Gains Exemption (ie investments in excess of £400,000) should qualify for Capital Gains Taper Relief, which applies an effective rate of CGT at 10% for Investments held for two years.