Tax reliefs under the enterprise investment scheme (EIS) can be summarised as follows:

1. •

   income tax relief for the investor of up to 30% of the amount invested

2. •

   disposals of EIS shares after three years may be free from capital gains tax (CGT)

3. •

   capital gains deferral relief allows investors disposing of any asset to defer gains against subscriptions in EIS shares

4. •

   losses on EIS shares may be offset against taxable income

5. •

   EIS investments should qualify for inheritance tax (IHT) business property relief (BPR) after two years’ ownership, but from 6 April 2026 the relief is subject to the new BPR allowance rules which limit 100% relief to £2.5 million with 50% relief above that threshold

EIS reliefs are available to individuals only, except for EIS deferral relief which is also available to trustees.

EIS reliefs are available to UK residents. Provided that the qualifying conditions of the EIS are satisfied, a non-UK resident may claim income tax relief against any liability the individual may have to UK