This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Investing in EIS eligible equity raise after death but before probate

dominoman
Posts:60
Joined:Fri Jan 15, 2016 6:41 pm
Investing in EIS eligible equity raise after death but before probate

Postby dominoman » Fri May 08, 2020 4:57 pm

I am one of the executors of my father's estate.  He held many illiquid shares, and a good number of those now need cash urgently because of the Covid lockdown.

The companies are raising money under the UK Government's Future Fund convertible loan scheme, and we would like to invest some of the money in the estate into these loans now (all beneficiaries agree).  

My question is regarding EIS.  Normally investing in this kind of convertible loan (not EIS eligible) would also prevent any future investments into these companies being EIS eligible.  However, I'm not clear if that would affect the beneficiaries.  If we invest now (before distribution) it is money from the estate.  Once distributed EIS benefits don't pass on to beneficiaries anyway, so presumably the beneficiaries could still invest in the same companies and get EIS in future?

Sorry it's a complicated question, and I don't know if I explained it well.  Would appreciate any views.  Thanks

Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”