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        Tax breaks for investors in small companies

        Tax breaks for investors in small companies

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          Investors in small businesses are to have their tax breaks further extended as officials in Brussels have approved plans by the Treasury to expand the Enterprise Investment Scheme (EIS).

          This will see a further £100 million in tax breaks for investors who take risks and invest in small businesses helping growth in the UK.

          The rate of income tax relief under the scheme will go from 20 per cent to 30 per cent and double the annual investor limit to £1 million.

          In a period when most companies in the UK were having problems with funding sue to the recession, the scheme helped 1,800 projects in the fiscal year ending March 2009 with a total investment of £500 million.

          Meanwhile shadow chancellor Ed Balls called for a national insurance holiday for companies with fewer than 10 employees taking on new staff at the Labour Party conference.

          Chancellor George Osborne said: “We want to make the UK the best place to start, finance and grow a business. These changes will give a bigger tax break to those who take risks
          for growth and jobs in Britain by investing in the small companies that have the potential to be fast growing.”

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