The cost of acquiring EIS shares is negligible, as no processing fees need apply if an investor deals directly with the company issuing new shares. As in the case of Accolade's Enterprise Investment Scheme which has been approved since 2003.
Accolade was established in 1980 and, ever since, has operated successfully, under the same personal ownership and management, but mainly in Scotland.
Having developed a unique website which is faster, better and larger than those of any competitors, Accolade plan to expand profitably as a UK-based, international internet trader. Business to business office supplies is their main marketplace.
Accolade's existing Enterprise Investment Scheme will fund this growth. In effect, their old E.I.S. is an investment in a NEW venture...one that happens to have been trading for more than 30 years!
You can invest without the spectre of 'cash burn'.
Internet trading now enables small firms to outsmart those dinosaurs who waste money on salesmen and mail marketing. From being a little local company in an area of urban deprivation, Accolade has transformed into a successful UK web trader.
An Enterprise Investment Scheme permits an investor to participate in running a business and to receive reasonable remuneration for this. Accolade welcomes all assistance when directed to achieve profitable returns and growth in share value.
An EIS investor cannot be 'connected' to a company by owning more than 30%. A trading relationship is allowed, providing transactions are not on preferential terms.
For instance, an individual purchasing office products for their business could buy from a company in which they hold less than a 30% shareholding. This could be on 60-day credit, or even a consignment stock basis, if those terms were available to other customers. Prices paid would have to be competitive to ensure compliance.
As a minority shareholder, you can be paid as a Non-Executive Director of a firm that supplies your other business...and benefit from EIS tax reliefs.
Recently, EIS Tribunals decided against two taxpayers, resulting in tax relief being withdrawn. These HMRC cases (Skye Inns & Benson Partnership) illustrate why it may be prudent to invest in a company that keeps a 'weather-eye' on matters pertaining to Enterprise Investment Schemes.
Accolade's E.I.S. was approved in 2003 and investors have enjoyed tax-free capital growth in addition to tax reliefs.
A key element of Accolade's plan is in realising your EIS investment. Accolade has viable exit strategies which may enable an investor to realise their shareholding every three years...potentially recycling the 30% tax rebate on a triennial basis.
Having been an employee owned company since 1999, there are strong incentives for staff & franchisees to purchase maturing Enterprise Investment Scheme shares.
No guarantee can be given about purchasing former E.I.S. shares but Accolade's Employee Ownership pre-dates our Enterprise Investment Scheme by four years.
A significant portion of our employees' pay now relates to dividend earnings. Franchisees will be required to buy existing shares as a condition of their licence.
The current Principal Shareholder will be 65 in two years time, so an outright trade sale is also a possibility. Were this to happen, it may inhibit re-cycling of shares. It would help formulate policy if, when subscribing for shares, you would indicate your likely preference for either company sale or re-cycling via staff purchasing shares.
Accolade Office - Enterprise Investment Scheme open to investors - 2016
Phone 0141 774 4600 to check availability of this 30% tax saving EIS
An Enterprise Investment Scheme is by far the best way of exploiting tax breaks
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