About EIS

The Enterprise Investment Scheme (“EIS”) is a government scheme designed to assist qualifying small and medium sized companies to raise capital. To this end, it offers a range of tax reliefs to investors who subscribe for qualifying shares in these companies. EIS tax reliefs potentially available to subscribers of eligible shares issued by qualifying companies are: Income Tax Relief, Capital Gains Tax Exemption, Inheritance Tax Relief, Capital Gains Tax Deferral Relief, and Loss Relief.

More information on the specifics of EIS can be found by visiting the websites below.
Enterprise Investment Scheme Association
www.eisa.org.uk/

EIS Benefits
Investors over 18 who are UK resident taxpayers are able to claim the following benefits:
· 30% income tax relief, reducing the net cost of investment to 70p per £1 invested.
· The opportunity to defer Capital Gains Tax on capital gains realised within three years before or up to 12 months after investments are made.
· No Capital Gains Tax payable on gains realised after three years.
· Investments held for more than two years qualify for relief from inheritance tax.
· If shares are realised at a loss, that loss can be set off against income in the year of disposal or previous year. This means that a 45% taxpayer with sufficient income is only at risk on 38.5p per £1 invested.