Spring 2011 Newsletter Content Leading article... Anything up his sleeve? General tax... Relaxed association File under 'e' Research costs? Give early A tax on houses Pension changes Holiday entitlement EISy money VAT... 20:20 vision Horses for courses? Do it yourself That's entertainment All in the contract? Where am I? Law items... What's in a title? The privileged few Called to account Don't mince words

EISy money In difficult economic times it is important to look at anything the government offers as an incentive for investment. The Enterprise Investment Scheme aims to encourage people to put money into small unquoted trading companies – a risky investment, of course, but sweetened by the offer of a 20% income tax rebate on cash introduced and the possibility of making tax-free capital gains in the long term. There are many conditions to be satisfied, but the basic idea is that an individual has to subscribe for new share capital in the company, and must not own more than 30% of it afterwards. The maximum investment is £500,000 a year, and you can claim your tax rebate in the previous year, accelerating the cashback. EIS isn't available to people who have run or owned the company in the past, so it's aimed at outsiders being brought in – a 'business angel' can claim EIS relief on a capital injection and then become a director. However, the scheme isn't restricted to business angels. If four individuals want to set up a company together – less than 30% each – they can do so using the EIS and enjoy a tax rebate. If you think you might be able to bring in an investor who qualifies for EIS – or if you and three friends want to set up a business – we can look at whether you can claim this attractive relief.