To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these five questions.
What is the maximum income tax relief, in terms of tax, that an individual can claim from an investment in EIS shares in 2012/13?
A) 20% of £500,000 = £100,000
B) 20% of £1m = £200,000
C) 30% of £500,000 = £150,000
D) 30% of £1m = £300,000.
What is the maximum EIS investment that can be carried back from the tax year 2011/12 to 2010/11 in order that the income tax relief can be set against income tax paid in 2010/11?
C) £1 million
D) No limit
In order to avoid a clawback of income tax relief, for how long must EIS shares be held?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
What types of assets disposed of qualify for EIS deferral relief?
A) Any type of asset giving rise to a capital gain
B) Any type of asset giving rise to a capital loss
C) Any type of asset giving rise to an income tax charge
D) Any type of asset giving rise to an income tax loss
Which of the following types of shares could qualify as EIS shares?
A) Any quoted or unquoted shares in a trading company
B) Only unquoted trading company shares
C) Only Aim trading company shares
D) Any Aim or unquoted trading company shares
Answers: D, B, C, A, D