What is EIS?
The Enterprise Investment Scheme was introduced in 1994 by HMRC to stimulate investment into smaller higher risk unquoted companies.
The scheme offers investors a range of tax reliefs when investing in qualifying companies which include:
- Income Tax Relief
- Capital Gains Tax Relief on disposal of shares
- Capital Gains Tax Deferral Relief on prior gains
- EIS Loss Relief against Income or Capital Gains
- EIS Inheritance Tax and Business Property Relief
For the investors these reliefs can help to mitigate risk and enhance returns.
Who is EIS for?
The Enterprise Investment Scheme is aimed at the wealthier, sophisticated investors, who can invest up to £1,000,000 in any tax year and receive 30% tax relief.
Shares must be held for a minimum of 3 years from the date of subscription, or 3 years from the commencement of trading, whichever is the later.
Enterprise Investment Scheme is designed to encourage investment into unlisted companies, just like the ones we have featured on the GrowthFunders platform.
For further information on EIS, visit www.seiswindow.org.uk