The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies. An EIS offers investors a number of positive returns in the form of immediate income tax relief and tax-free growth on income.
30% Income Tax Relief
As an investor, you will receive 30% immediate tax relief on amounts invested up to £1M in the tax year 2015/16. Income tax relief can also be carried back to the 2014/15 tax year with 30% income tax relief available. Investments must be held for at least three years.
Tax Free Growth
All capital gains made within an EIS investment are tax free.
£1 million per year.
Capital Gains Tax (CGT) Deferral
From the sale of shares or a second property, Capital Gains Tax can be deferred by investing the proceeds into an EIS to the value of the investment. Investments must be made up to three years previously or up to a year in the future from the point where the investment into the Company is made.
Inheritance Tax (IHT) Free
By investing in a Deal Partners EIS, once the investment has been held for two years the investment is free of Inheritance Tax. In order to qualify, the investment must be held at the time of death.
Current EIS Investment Rates
No single investor can own more than 30% of an EIS company without losing the EIS benefit.