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Net investmentGross, or total, investment minus depreciation.Net investment Similar MatchesEnterprise Investment SchemeEnterprise Investment SchemeThe Enterprise Investment Scheme is a UK tax incentive scheme designed to encourage investors to invest in unquoted companies. The benefits are:Income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.CGT relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.Tax relief on losses: if your EIS investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.Rollover relief: if you use the proceeds from selling shares in Company A to invest in Company B, and Company B is an EIS-qualifying company, you won't have to pay tax on the gains made from Company A until you subsequently dispose of Company B's shares. i.e. your gain is rolled over.The maximum amount you can invest in an EIS is £150,000 annually. Similar tax breaks are available from investments in Venture Capital Trusts (VCTs). Essentially, these are investment trusts that invest in small unquoted companies. As with EIS investments, there are lots of rules which, if broken, will invalidate the tax advantages.The risks associated with EIS companies are high and you should take professional advice before committing funds to them. Automatic reinvestmentAutomatic reinvestmentSee: Constant dollar plan. Investment companyInvestment companyA company which invests the funds of small private investors in a range of securities. This enables fund shareholders to partake in ownership of a diversified portfolio of shares. Investment companies are classified as either open end (mutual fund) or closed end (investment trust). Return on investmentReturn on investmentThe overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6% Real Estate Investment Trust (REIT)Real Estate Investment Trust (REIT)REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund. Further Suggestionsalternative investmentValue Line investment survey Investment Management Regulatory Organisation Investment manager Leveraged investment company Trade and investment Association of Unit Trusts and Investment Funds protected investment products Bank Investment Contract (BIC) Investment company investment income Passive investment management approved investment trust Reinvestment Monthly investment plan Green field investment Reinvestment rate local authority investment Net investment income per share Investment product line (IPL) Independent investments investment Unamortized premiums on investments Association of Investment Trust Companies Portfolio investment |
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