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Tax Relief: Enterprise Investment Scheme

The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies. 

This guide provides an overview for companies and potential investors who have heard of the Scheme and want to know more about it and how it works. It does not cover all the detailed rules, so companies and investors should not proceed solely on the basis of the information in it, and should consider seeking professional advice.

Please Note: The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax relief, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.

Example

Jenny invests £20,000 in tax year 2012-13 (6 April 2012 to 5 April 2013) in EIS qualifying shares. The 200 EIS relief available is £6,000 (£20,000 at 30%). Her tax liability for the year (before SEIS relief) is £15,000 which she can reduce to £9,000 as a result of her investment.

30%

Tax deductible
You may be able to claim up to 78% tax relief on your investment if the company succeeds and you pay no CGT when you sell your shares

Crowd for Angels has a large selection of EIS-eligible companies looking for investment. We make it simple and straightforward to invest in EIS-eligible companies, and when you make an investment, we take care of all the paperwork to ensure you are able to claim your full reliefs. For more information on how EIS works please read the HMRC guidance documentation.