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The Enterprise Investment Scheme (“EIS”) is a venture capital relief. It is designed to provide investors in smaller, growth companies with attractive tax incentives where they invest in qualifying shares and meet a myriad of other conditions and requirements.
The reliefs include:
The first two of these reliefs are closely linked. You will only get one with the other. Capital gains deferral reliefs is something of a standalone relief and can be obtained in circumstances where the first two cannot.
These reliefs are highly attractive. However, this is not pure altruism from the Government. The quid pro quo is very much that these are high risk investments.
Don’t put the tax tail ahead of the investment dog. As investment dogs can be put down.
EIS is the older sibling of Seed EIS which provides similar reliefs for very small, early stage companies.
Here are some facts and figures on the development of EIS:
Further articles on the Enterprise Investment Scheme / EIS
Albeit, we can’t give you investment advice as we are not regulated by the Financial Conduct Authority – so please get that type of advice from someone who is!