Enterprise Investment Scheme
The Enterprise Investment Scheme (EIS) is a UK government-backed initiative designed to encourage investment into early-stage, high-growth companies.
When you invest in a qualifying EIS company, you buy new shares in a business that meets the government's eligibility criteria. In return, you receive a range of generous tax benefits designed to reduce your risk and enhance your overall return.
The scheme is overseen by HMRC, and all EIS-qualifying companies must operate in sectors that contribute to the UK economy and demonstrate growth potential.
By supporting innovation and entrepreneurship, EIS provides attractive tax incentives to investors who help fuel the growth of British businesses.
Key Investor Benefits
30% Income Tax Relief
Claim 30% income tax relief on investments up to £1 million per tax year (or £2 million for knowledge-intensive companies).
Tax-Free Capital Gains
If shares are held for at least three years, any profits made when selling are free from Capital Gains Tax (CGT).
Loss Relief
If the company doesn't perform as expected, offset the loss against your income or capital gains tax.
Capital Gains Deferral Relief
You can defer tax on capital gains from other investments if those gains are reinvested into an EIS company.
Inheritance Tax Exemption
EIS shares are typically exempt from Inheritance Tax once held for two years and at the time of death, under Business Relief rules.
You can claim £50,000 (30%) back in income tax relief
If the investment doubles in value after three years, you'll have a £50,000 gain and pay no Capital Gains Tax
Your net cost is effectively £35,000
If the company underperforms, you can claim loss relief, further reducing risk exposure
Feature
Description
Income Tax Relief
30% on investments up to £1M (£2M for KICs)
CGT Exemption
No CGT on gains after 3 years
CGT Deferral
Defer tax on other gains when reinvested
Loss Relief
Offset losses against income or gains
Inheritance Tax Relief
100% exemption after 2 years
Minimum Holding Period
3 years
EIS is open to individual UK taxpayers who invest in new shares of qualifying companies. To qualify:
You must not have a controlling interest in the company
The company must have obtained EIS Advance Assurance from HMRC confirming its eligibility
Shares must be held for at least three years to retain reliefs
Important Information
EIS investments are in unlisted, early-stage companies, and capital is at risk. Returns are not guaranteed, and investors should seek professional advice to ensure EIS is suitable for their financial circumstances.
We work with EIS-qualifying companies across sectors including renewable energy, sustainable technology, and innovation-led ventures. Contact our investment team to learn more about current opportunities.