Enterprise Investment Schemes
Enterprise Investment Schemes (EISs) provide you with an opportunity to support smaller UK businesses that may find it harder to get traditional finance, while receiving attractive tax reliefs.
EISs were introduced by the UK government in 1994 to encourage individuals to invest in this crucial area of the economy. Since EISs were launched, they have supported more than 26,000 individual SMEs and raised some £15.9 billion of funds.
EIS tax reliefs include:
- 30% income tax relief on the amount subscribed up to £1,000,000 per tax year. This can be carried back to the previous tax year. Investments must be held for at least three years.
- Tax-free capital gains.
- Inheritance tax relief after two years, provided the shares are still held at death.
- Capital gains tax deferral relief.
- Loss relief, offset against income at your marginal tax rate or capital gains (net of any income tax relief you may have received).
Find out more in our Guide.
The relief you will receive depends on your individual circumstances. Tax rules may change in future. HM Revenue & Customs law and practice can change over time. If you are unsure about your tax status you should seek independent advice from a professional adviser.
 EIS and SEIS Statistics April 2017, HMRC