Investment » Norfolk First

EIS - Enterprise Investment Scheme

Encouraging equity investors through tax relief on eligible investments.

The Enterprise Investment Scheme (EIS) was originally introduced in 1994 to encourage individuals to invest in small higher-risk trading companies as a means to help alleviate the problems faced by such companies in raising equity finance.

The scheme provides income tax relief for new equity investment by external investors and business angels in qualifying unquoted companies, and capital gains tax exemption on disposal of shares.

The Enterprise Investment Scheme (EIS) can be valuable to those who find an investment. For an investment over £500 in eligible shares, tax relief is given at 20% up to a maximum investment of £400,000 in any tax year, for those individuals and companies eligible for EIS.

EIS investments are exempt from capital gains tax if held for three years. In addition it is possible to defer payment of tax on an existing capital gain by setting it against an EIS investment.

EIS is very complex and you are strongly advised to seek help from a tax expert. Please click here for the Inland Revenue's information fact sheet on EIS tax relief.

More info: From your accountant or the Inland Revenue www.inlandrevenue.gov.uk