Page 16 - Kavka Proposal Web

Part Two
Investment
Opportunity

10. The Route to Market • Unlimited deferral of capital gains tax due on gains
realised in the three years prior to, or up to 12 months
• Focus on establishing quality distribution in London after, subscription for shares, up to the amount
(as outlined above) subscribed;
• Within 6 months start promoting in other major
UK cities; Manchester, Liverpool, Leeds, Glasgow, • Income Tax or CGT Relief for any loss (net of the initial
Edinburgh Income Tax relief obtained) made on the disposal
• Year 2 - start marketing the flavoured Vodkas in the of EIS shares, either in the year of the loss or the
previous tax year; and
UK and launch the plain into Europe - France and
Germany initially. • Business Property Relief from Inheritance Tax (“IHT
• Year 3 Continue expansion in the UK and Europe and Relief”) if shares are held for more than two years
launch into the USA - New York will be our initial entry while the Company is trading. There is no limit on
point as we have good connections in the trendier the amount of the investment qualifying for this
areas of Brooklyn. exemption.
The maximum investment on which a Shareholder may
11. Enterprise Investment Scheme
claim EIS relief on Qualifying Shares is £1,000,000.
It is intended that EIS Qualifying Shares in the Company There is no limit on the amount of gains that can be
will qualify for relief under the Enterprise Investment deferred for CGT purposes. Further details of EIS Relief
Scheme (“EIS”). Shareholders in EIS qualifying and the rules for an EIS qualifying company, are set out
companies can, depending upon their individual in Part 4 of this Brochure.
circumstances, enjoy some or all of the following
benefits:
• 30% Income Tax Relief, reducing the initial cost of
investment to 70p per 100p invested. Relief may be
claimed in the current financial year, or the investor
can claim to treat the EIS shares as being subscribed
for in the previous financial year to optimise the tax
relief available;
• Exemption from Capital Gains Tax (“CGT”) on gains
made from the disposal of EIS shares, provided that
Income Tax Relief has been claimed in respect of
those shares;

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