Claim back up to 86.5% of your investments in the form of Tax Reliefs
The Enterprise Investment Scheme (EIS) is a tax relief designed to incentivise private investors to invest into startups and early-stage companies. It can reduce your capital at risk to less than 40% of the amount you invest through income tax relief (at 30%) and loss relief
- You gain access to investments in early-stage companies.
- You can claim up to 30% income tax relief, provided the investment is held for a minimum of three years.
- There’s the potential for 100% relief on inheritance tax (available after you’ve held the investment for two years and provided shares are still held at time of your death).
- You have the opportunity to defer a capital gain and eliminate it entirely if your EIS shares are still held at death.
- The investor may not have more than a 30% interest in the company
- No partner or associate of the investor (including spouse, relations, prior business contacts) may have other interests in the company
- The investor must not have any form of preferential shares
- The investor must not have any other form of controlling interest in the company
- The scheme must not be used for the purposes of avoiding tax
The latest government figures released in May 2020 state 31,365 individual companies received investment through the EIS, and £22 billion of funds have been raised. These companies range from small ‘friends and family’ rounds, business angel investments where individuals are contributing skill as well as funding, through to formal public offers and EIS funds. The number of professionally managed EIS/SEIS funds is growing and the sector is becoming more established.
Get your FREE guide to tax efficient E.I.S. Investments
HMRC approved investments
0% capital gains tax on profits
Claim 30% income tax relief
100% inheritance tax relief
Claim up-to 45% loss relief