Page 63 - Praetura EIS 2019 Fund Information Memorandum

EIS Scenarios

Initial Investment Doubles in value Maintains value Loses all value

Total Investment £100,000 £100,000 £100,000
Less: Income Tax Relief (£30,000) (£30,000) (£30,000)
Net Cost of Investment £70,000 £70,000 £70,000

Investment Returns Doubles in value Maintains value Loses all value

Sale of Shares £200,000 £100,000 £-
Less: Net Cost of Investment (£70,000) (£70,000) (£70,000)
Total Gain / (Loss) £130,000 £30,000 (£70,000)
Capital Gains Tax £-* £-* £-

Loss Relief £- £- £31,500**
Net Gain / Loss £130,000 £30,000 (£38,500)

Percentage Gain / (Loss) 186% 43% (55%)

* No capital gains as long as shares held for 3 years
** Receive loss relief equal to capital at risk. Net cost of investment (£70,000) multiplied by assumed personal tax rate of 45%

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