What is EIS?

Let’s start right at the beginning.

The Enterprise Investment Scheme (EIS) is a Government initiative to attract investment into smaller UK companies.

EIS investments provide enterprise capital to smaller unlisted companies that might otherwise struggle to attract funding. The Government recognises the important role smaller businesses play in a successful economy and offers tax benefits to EIS investors to ensure funding is available.

According to the latest figures provided by HM Revenue & Customs (HMRC) in the tax year 2023 to 2024, 3,780 companies raised a total of £1,575 million of funds under the EIS scheme. Around £309 million of investment was raised by 1,010 new EIS companies in 2023 to 2024.*

In 2012, the UK Government launched the Seed Enterprise Investment Scheme, offering further tax reliefs for those investing in very early-stage companies. In the 2023/24 tax year, 2,290 companies received investment through SEIS, raising a total of £242 million. This represents a 51% increase from the previous year, following the expansion of scheme limits introduced in April 2023. Around 1,535 companies were using the scheme for the first time, raising £181 million.*

As shares in investee companies are in unquoted shares, there is no secondary market to sell shares. However, the company may be able to buy back the shares.

*Updated in April 2025, select here for the latest figures.

EIS can come in different forms, such as:
PORTFOLIO MANAGED

An EIS/SEIS is generally a portfolio-managed service that invests in several UK-based, early-stage companies that abide by HMRC qualification criteria. Tax reliefs are available from the date shares are issued by the investee company.

SINGLE COMPANY

It is possible to invest directly in EIS/SEIS-qualifying single companies. However, any investment in a single company needs more diversification and could represent an additional risk.

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