Enterprise investment scheme ― introduction

By Tolley
Enterprise investment scheme ― introduction

The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Enterprise investment scheme ― introduction
  • Summary of guidance notes ― EIS
  • Commercial and tax risk to consider when advising on EIS
  • Application process for EIS and advance assurance
  • Investments through approved EIS funds

The enterprise investment scheme (EIS) offers substantial tax incentives to investors in companies which qualify.

In summary, tax reliefs under EIS are as follows:

  • income tax relief for the investor of up to 30% of the amount invested
  • disposals of EIS shares after three years may be free from capital gains tax
  • capital gains tax deferral relief allows investors disposing of any asset to defer gains against subscriptions in EIS shares
  • losses on EIS shares may be offset against taxable income
  • EIS investments should qualify for IHT business property relief after two years’ ownership
Summary of guidance notes ― EIS
Topic summaryGuidance note
See the topic summary for SEIS and EIS for detailed comparison of these two schemes for tax incentivised investmentSEIS and EIS ― overview
Detailed guidance on the EIS tax reliefsEnterprise investment scheme tax relief
More guidance on the EIS tax reliefsEnterprise investment scheme deferral relief

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