Enterprise Investment Scheme (‘EIS’)

EIS is a valuable income tax relief available to individuals who invest in shares in certain qualifying companies.

The main features of EIS relief are:

  • The relief is 30% of the equity investment
  • The relief is used to reduce the income tax due in the year of the investment or the previous year
  • There are detailed rules covering:
    • Investor eligibility
    • The qualifying activities for the company
    • The amount of an individual investment
    • The amount a company can raise
  • If the shares are held for three years no CGT is payable on a future share sale
  • There is a mass of detailed conditions which need to be reviewed