EIS for Schools Fee Planning

Date27 Oct 2015

Did you know that EIS can be used for School fees planning through the concept of rolling EIS investments? For example:

  • Year 1 you invest £100k in an EIS claiming £30k income tax relief which can be used to pay the fees.
  • Same again in years 2 and 3.
  • By year 4 hopefully some of the first year’s investments will start to mature and return capital which can be reinvested – this time giving £40k because of the investment growth and so the process goes on.

With capital gains tax, you will remember that you can defer capital gains incurred up to 3 years before investment. This can be used to gain additional years’ annual allowances, or to reorder losses and gains.