The Enterprise Investment Scheme (EIS) Tax Relief

EIS was designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship. Now the Enterprise Investment Scheme has become one of the most revered government-backed schemes ever created.

Tax benefits offered to investors via EIS


Income Tax Relief

Investors can claim up to 30% income tax relief on the value of their investment up to £1 million (£2 million for knowledge-intensive companies).

Capital Gains Tax Exemption

Any capital gain is CGT free if shares are held for a minimum of 3 years and income tax relief was claimed.

CGT Reinvestment Relief

Payment of CGT can be deferred if the gain is reinvested into an EIS qualifying company. The investment must be made 1 year before or up to 3 years after the gain arises.

Loss relief

If the shares are disposed of at a loss, you can elect that the loss be set against any income tax of that year or carry back to previous tax year.

Inheritance Tax Relief

Inheritance Tax relief can be claimed against the value of shares if the investment is held for two or more years at death.

Capital is at risk. Investing in early-stage companies involves risks including loss of capital, illiquidity, lack of dividends and dilution. The information above provides only a summary of the tax benefits for more information see the government website. The rates are based on current legislation and can be subject to change. If you are in doubt about eligibility for tax reliefs or the tax treatment of investments, you should speak to an independent tax adviser.


Are you interested in investing in Haatch?

Request our IM ->