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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a quick question about Corporation Tax: If my limited

Resolved Question:

Hi - I have a quick question about Corporation Tax: If my limited company is going to make a taxable profit of £100k for the year, and I invest in an EIS company during the period by buying shares for £50k, is that cost deductible from the Corporation Tax that will be payable on the £100k profit?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. I'm afraid not. EIS relief is only open to individuals, not limited companies so you will not be able to reduce your company's profit or corporation tax liability using EIS. You will need to have paid at least £15,000 in personal tax in the tax year you invest in the EIS company or in the previous tax year to get the full relief. Take a look here for more information. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you - I understand that EIS relief is only open to individuals, but what I don't understand is if my company's investment in another company (as a share purchase) is deductible against any profits on which it has to pay corporation tax, regardless of whether the company I am investing in is EIS or not??
Expert:  TonyTax replied 1 year ago.
No, such an investment would not be deductible from your company's profit for CT purposes regardless of its (the company you are investing in) EIS status.
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