The Enterprise Investment Scheme (‘EIS’) offers tax relief to individuals who invest in new shares in unquoted trading companies. If you are looking to make investments or to raise money for your company, the EIS might be the answer. There are three main reliefs available:
- Income tax relief;
- Capital gains tax exemption; and
- Capital gains tax deferral.
Income tax relief is given at the rate of 30% on the cost of the shares and is set against your income tax liability for the year in which the investment is made or it can be carried back to the previous tax year, if desired.
The maximum investment on which relief can be claimed is £1m each tax year and there is no minimum investment.