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Enterprise Investment Scheme and Seed Enterprise Investment Scheme

EIS was launched in 1993, Seed EIS is the younger sibling and was launched in 2012 to focus more closely the tax advantages on even smaller start-up companies. It is possible to move from SEIS to EIS as the company grows.

In essence the tax relief is designed to encourage private investment into smaller and start-up companies via reducing the investment risk through offering tax relief to individuals in respect of the initial investment, the investment growth and if a loss is made in respect of that loss.

The tax rules are complicated, detailed, and as can be anticipated, strictly interpreted and enforced by HMRC. Here at ETC Tax we are well versed in helping clients navigate through these shark infested waters in two separate guises.

We can assist potentially eligible companies in obtaining the necessary assurances that any investment received may qualify for SEIS/EIS and continually ensure that this is case. Furthermore, we can also structure investment so that individuals may maximise their individual relief.

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Schemes (SEIS) are designed to help smaller, higher risk companies raise finance by offering income tax and capital gains tax relief to individuals for the subscription into new shares in qualifying companies.

EIS and Seed EIS

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Withdrawal of EIS Income Tax Relief

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