EnterpriseInvestmentScheme

The Enterprise Investment Scheme is a government initiative designed to encourage investment in smaller, higher-risk trading companies by offering investors a range of tax reliefs, including income tax relief on the amount invested, potential capital gains tax deferral, and favourable treatment on eventual disposal, provided the shares and company meet the qualifying conditions.

Because the reliefs are generous, the qualifying rules are correspondingly strict, covering the type of company, how long shares must be held, and the investor's relationship to the business. Getting the structure wrong can mean reliefs are denied or clawed back later. We can help both investors and companies seeking EIS investment navigate the qualifying requirements.