EIS Investments

Enterprise Investments Scheme

With the average life expectancy improving every year it seems crazy that the government wants to limit the amount we can save into pensions, however even so, pensions seem to be an easy target when it comes to trying to balance the budget so the lifetime allowance continues its free fall.

The Enterprise Investment Scheme is a unique tax incentive, offered to investors, to encourage them to invest in small companies in the UK, in order to help them develop and grow.

In return, investors will receive favourable tax treatment on the investment they make, helping to reduce the risk that is usually associated with investing in smaller companies.

New enterprise plays an important role in the UK economy, as its success will create new employment and help the government meet its targets for economic growth. Offering tax relief in exchange for investment in enterprise creates a win, win situation for Government and investors.

Tax treatment

Subject to the investment being held for a minimum of three years, there are several tax advantages that are available to investors:

  • 30% upfront income tax relief
  • Tax-free growth
  • Loss relief
  • 100% Inheritance tax relief after the investment has been held for two years
  • 100% capital gains tax deferral for the life of the investment

EIS investments are an investment in shares that are purchased in a qualifying EIS company. Not every company qualifies and there are strict criteria that must be met in order to maintain the tax relief on the shares, which is why investors should ensure a company has received pre-approval from HMRC before deciding to invest.

Some of the unique tax advantages afforded to EIS investors make investing in unlisted shares very attractive for the purposes of tax planning.

For details on our latest EIS offers please contact a member of our ‘Enterprise Team’ who will be more than happy to talk you through our current opportunities.

EISs are high-risk investments and may only be suitable as medium or long-term investments. EIS’s are complex products and are not suitable for all investors.”

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