Enterprise Investment Schemes (EIS) are an opportunity for investors to support the growth of small UK businesses while receiving attractive tax reliefs in return. They were introduced by the UK Government to encourage individuals to invest in this crucial area of the economy. We are proud of the investments our EISs have invested in so far, and the positive impacts they have, including those in renewable energy, leisure and entertainment businesses.
Within the restrictions of the EIS rules, we have sought to manage risk by:
- Diversification: by spreading funds across different investments and locations.
- Predictable revenue streams: from (i) index-linked Government-backed subsidies and (ii) sale of renewable energy (electricity).
- No planning risk: we only invest in businesses that have in place all the relevant consents and planning permissions.
- Downing consents: we place various restrictions on the businesses in order to protect our investors, including limiting debt and Downing consent being required for major expenditure.
By investing in an EIS, the tax reliefs that have been available include:
- 30% income tax relief on the amount subscribed from the 2011/12 tax year and 20% prior to this (subject to a 3 year holding period)
- IHT-free after 2 years (from date of share issue)
- CGT deferral relief
- Loss relief against income or capital This is only a brief summary of the EIS tax reliefs and investors should take personal tax advice on the reliefs available to them.
The relief you get depends on your individual circumstances and the tax rules may change in future. HM Revenue & Customs law and practice can change over time and investors who are unsure about their tax status should get independent advice from a professional adviser.