All About EIS
The Enterprise Investment Scheme (EIS) is a government initiative designed to allow investment in early stage businesses with high growth potential. The UK government rewards investors supporting UK based early stage businesses by providing generous tax reliefs including upfront income tax relief on the value of the investment, tax free capital gains, capital gains bill deferral and loss relief in cases where returns are less than the amount put in. By investing in an EIS, you own direct shares in the businesses, with the aim to achieve returns when the companies grow and ultimately ‘exit’.
Six Reasons Why
You Might Invest In An Enterprise Investment Scheme (EIS)
Growth Potential
By owning shares in early-stage businesses, and receiving tax-free returns at the point of exit.
Income Tax Relief (30%)
30% upfront ICT relief on the amount invested. This can be claimed in the current or the previous tax year. Tip: Watch out for entry fees and deployment timescales.
Capital Gains Deferral
Retrospectively claim back and defer a CGT bill (crystalised within the last 3 years or next 12 months).
Inheritance Tax Relief
The investment is free from IHT should it be held for two years and at the point of death.
Diversification
Venture capital reacts differently in times of market crisis to listed businesses. Read an independent report by Hardman & Co here for more information.
Share Loss Relief
To help mitigate risk, the government offer share loss relief on failed companies within a portfolio. Take a look at our calculator to learn more.
“I will always be on the side of entrepreneurs, innovators, young people inventing the future. Because the biggest lesson I took from my time in California still guides me now. What really matters for economic success – is innovation. If we want our country to succeed, we need to do what we’ve always done and embrace new technologies, and the people and culture that creates them.”
Prime Minister, Rishi Sunak, 2023
EIS: Advanced Series
Recommended for advisers who have completed the EIS: The Basics course, who already recommend EIS to clients, or who are confident in their knowledge of tax efficient investments.
Based on attendee feedback, this series is classed as a world leading event according to Net Promoter Scores.
IMPORTANT: The views expressed in both the Eis basics and EIS Advanced broadcasts are the views of the individual and not necessarily of Deepbridge Capital LLP. Figures quoted by the presenter and/or guest may be approximations. The content of these videos should not be construed as financial advice. This video is a real-time financial promotion and, as a result, has not been approved as a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000.
RISK WARNING: Any decision to invest should be made only on the basis of the relevant documentation for the investment available in the accompanying company profile. Investments in unquoted companies carry high risks. Capital invested will be at risk and you could lose all of your investment. No established market exists for the trading of shares in private companies, making it difficult to sell shares.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. The availability of tax reliefs depends on the Company invested in maintaining its qualifying status.
Past performance is not a reliable indicator of future performance.
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