Most of the companies in which Archangels invest in benefit from eligibility for significant tax reliefs for investors who pay tax in the UK. The government recognise this as an important source of finance for small businesses.
The Enterprise Investment Scheme (EIS)
Under EIS investors can gain both income tax and capital gains tax relief when subscribing for eligible shares in small unquoted companies that qualify under the scheme.
tax relief on up to £1,000,000 of investment per tax year (plus the possibility of carrying back income tax relief to the previous tax year)
on disposal of EIS shares after the end of the three year qualifying period
on the disposal of the EIS shares to be set off against either income or capital gains
in respect of the disposal of other assets, on amounts reinvested in EIS shares, and Inheritance tax relief for EIS investments
Individuals can invest up to £2,000,000 a year in total for income tax relief and capital gains tax exemption, but there is no limit to the amount an individual can invest if they only wish to claim Capital Gains Tax Deferral and Inheritance Tax Exemption.