Quantcast Enterprise Investment Schemes | Shareholder Information | Downing

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:

  1. Diversification: by spreading funds across different investments and locations.
  2. Predictable revenue streams: from (i) index-linked Government-backed subsidies and (ii) sale of renewable energy (electricity).
  3. No planning risk: we only invest in businesses that have in place all the relevant consents and planning permissions.
  4. 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.

Enterprise Investment Schemes shareholder information

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Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

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