FAQ Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies. But, as with any tax scheme, it can be difficult to navigate. Read our EIS FAQ to find out what the scheme is and how to take advantage.
Disclaimer: Please note, owing to constant changes in tax legislation, the content of this FAQ may not be fully up to date. Also, each individual’s tax situation will differ. As such the reader should seek advice from a professional tax advisor in order to obtain up to date tax information pertinent to their individual circumstances.

What is the Enterprise Investment Scheme (EIS)?

The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies
to raise finance by offering a range of tax reliefs to investors who purchase new shares in those
companies.

What are the tax benefits to the investor of the EIS?

The key benefits can include:
a) Income tax relief of 30% of the amount subscribed for eligible shares
b) Exemption from Capital Gains Tax (CGT) on any gains from selling your EIS shares
c) Further income tax relief at top rate of income tax (40% or 45%) for any losses made on the
disposal of EIS shares and
d) Unlimited deferral of capital gains