What Qualifies For EIS ?

The government designed EIS to support high-growth, UK-based companies that will shape the future. The key criteria are the following;

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SEIS Tax reliefs

Investors can, depending on their individual circumstances, enjoy some or all of the tax benefits available under the Seed Enterprise Investment Scheme. The following is a general summary of the main current tax advantages that may be available to an Investor under the Seed Enterprise Investment Scheme in respect of an investment made in an Investee Company during the tax year.

  • 50% UPFRONT INCOME TAX RELIEF up to a maximum investment in SEIS of £200,000 per tax year per individual.

  • CAPITAL GAINS made that are reinvested in SEIS shares qualify for a 50% exemption from CGT.

  • TAX FREE GAINS. There is no capital gains tax liability on gains on the disposal of shares which have been held for 3 years in SEIS qualifying companies, on which SEIS income tax relief has been obtained.

  • 100% INCOME TAX exemption through the availability of Business Relief may be available after each individual investment has been held for at least 2 years.

  • INCOME TAX CARRY-BACK RELIEF claims may be made for amounts subscribed for shares in EIS qualifying companies, such that an investment is treated for income tax relief purposes as having been made in the previous year, subject to maximum investment levels for that tax year. This enables the investor to claim tax relief in the period(s) most advantageous to him/her.

  • LOSS RELIEF. A loss on any qualifying investment in the portfolio, irrespective of the overall performance of the portfolio, can be offset by individuals against income of the tax year of loss, or the previous year, or against capital gains of the tax year of the loss and future years.

The above tax advantages can only be claimed at the time when the investment is made, rather than when an investor makes an initial subscription to the SEIS fund. Please note that the terms of the Seed Enterprise Investment Scheme may change and the benefits available today may not be available in the future.
Please note that tax benefits depend on personal circumstances, are not guaranteed, and rely on UK tax legislation which may change in the future.
The above does not constitute tax advice to any person: it is recommended that investors should seek personal advice from a qualified professional adviser.

EIS vs VCT

A comprehensive guide explaining the differences between a Enterprise Investment Scheme & Venture Capital Trusts.

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EIS: The Basics – On Demand

Our industry leading educational programme covers the basics on what you need to know to recommend an EIS.
If you’ve never recommended an EIS before, we suggest you start with episode 1.

Click the image below to sign up and access the video instantly, free of charge.

1. EIS Basis Modern World of EIS
EPISODE 1

The Modern World of EIS

An exploration into why EIS is more popular than ever, how early-stage companies are performing in the modern day climate and covering the basics of the tax reliefs.

45 mins

2. EIS Basics Trigger Points
EPISODE 2

Trigger Points

Investigating the types of clients where EIS is most suitable.

 45 mins

3. EIS Basics Due Diligence Research_01
EPISODE 3

Due Diligence & Research

Understanding the due diligence required by advisers who are recommending EIS to clients.

 45 mins

EIS: Advanced – On Demand

This is recommended for advisers who have completed the EIS—The Basics course, who already recommend EIS, or who are confident in tax-efficient investments.

Click the image below to sign up and access the video instantly, free of charge.

Academy Advanced Episode 1
EPISODE 1

Journey of an Investee Company

Investigating the journey of companies as they grow to the point of exit, and understanding how returns are achieved through an EIS investment.

45 mins

Academy Advanced Episode 2
EPISODE 2

More than just a tax tool

By analysing findings established in the Hardman & Co report, we discuss how you can add Venture Capital to a clients portfolio without impacting overall risk levels.

45 minutes

Academy Advanced Episode 3
EPISODE 3

Financial Planning Considerations

Understanding the due diligence associated with recommending an EIS, and a closer look at tax planning scenarios.

45 minutes

IMPORTANT: The views expressed in these webinars 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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