Enterprise Investment Scheme and Venture Capital Tax Reliefs

TAX RELIEF IN A NUTSHELL
WHAT IS EIS?

The Enterprise Investment Scheme (EIS) was introduced in 1994 by the goverment, to encourage investment in smaller companies by providing value tax benefits to investors. 

EIS has delievered around £24 Billions in funding since it was launched, helping around 33,000 companies. 

Early stage EIS investments are encouraged into small companies that show high promise and growth potential, by using investor money, to help finance expansion and development. 

The investors then are granted with a generous tax relief by the government. This help investors mitigate the investment risks and enhance the returns that can be generated from investing in growing UK companies.

EIS INVESTOR TAX BENEFITS

When you help a small UK business, it’s only right that you should receive some benefits by investing in the company. 

Below are some of the benefits included: 

30% Initial Income Tax Relief

Up to a maximum investment of £1,000,000 per tax year for EIS

CGT Freedom

No Capital Gains Tax to pay on any EIS gains after 3 years

CGT Deferral Relief

Potential unlimited indefinite deferral of an existing CGT bill

Loss Relief

Maximum exposure of 38.5p in the £ for a 45% Income Tax payer

Business Relief

Potential Inheritance tax savings of 40p in the £ after 2 years

Interested?

If you’re interested to know more about the benefits of investing in EIS company, please get in touch. 

0333 009 0801 | info@signaturetax.co.uk

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