Tax Relief: Enterprise Investment Scheme (EIS)
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 of EIS
Jenny invests £20,000 in tax year 2020-21 (6 April 2020 to 5 April 2021) in EIS qualifying shares. The EIS relief available is £6,000 (£20,000 at 30%). Her tax liability for the year (before EIS 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 58% 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 work with the company to ensure that you are able to claim the EIS relief.
Looking for a step-by-step guide to completing an EIS Certificate? Here's your guide. For more information on how EIS works please read the HMRC guidance documentation.
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