The purpose of the Enterprise Investment Scheme (EIS) is to help certain types of small higher-risk unquoted trading companies to raise capital. It does so by providing income tax and CGT reliefs for investors in qualifying shares in these companies.
There are in effect two separate schemes within the Enterprise Investment Scheme. An individual can take advantage of either or both of these schemes:-
- A scheme giving income tax relief on the investment and a Capital Gains Tax exemption on gains made when the shares are disposed of; and/or
- A scheme aimed at providing a Capital Gains Tax deferral
This Enterprise Investment Scheme (EIS) fact sheet will give an overview of:-
- EIS reliefs available
- Qualifying companies
- How to qualify for income tax relief
- How to qualify for Capital Gains Tax (CGT) deferral relief
- Receiving value from a company
If you would like to find out more about the Enterprise Investment Scheme, please do get in touch.