One of the most important services that modern tech firms provide for their clients is data analysis. A recent report says that the market for data analytics will grow more quickly in the coming years.
The investors have the opportunity to benefit from this expansion by making investments in the area. There are certain benefits of investing in tech businesses. If an investor purchases shares of a company that they have personally invested in, they are eligible for tax relief from HMRC through the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). This also helps small businesses because it gives them all the money they need to run their businesses.
A data analysis service is a business that looks at data and figures out what it means so that companies can make smart business decisions. Moreover, These services are increasingly popular in the business world as they allow organizations to unlock the vast potential of their data and put it to use in new, innovative ways.
Briefly, investors could avail themselves of the following benefits by investing in tech businesses:
Up to 50% income tax relief on investments up to £100,000 per tax year.
Any gain is Capital Gains Tax (CGT) free if the investment is held for at least three years.
Moreover, If the shares are disposed of at a loss, you can elect that the loss be set against any income tax of that year or of the previous year.
50% of capital gains are exempt from CGT if it is re-invested in a SEIS-qualifying company.
Up to 30% income tax relief on investments up to £1 million. An additional £1 million is eligible if invested in knowledge-intensive companies
Any gain is Capital Gains Tax (CGT) free if the investment is held for at least three years.
As a result, If the shares are disposed of at a loss, you can elect that the loss be set against any income tax of that year or of the previous year.
Moreover, All Capital Gains Tax can be deferred if the gain is re-invested in EIS-qualifying shares.