Glossary · UK
What is EIS (Enterprise Investment Scheme)?
Tax relief for investors in qualifying small unquoted trading companies — 30% Income Tax relief plus CGT perks.
Full Definition
The Enterprise Investment Scheme (EIS) encourages investment in higher-risk unquoted UK trading companies. Investors can claim 30% Income Tax relief on up to £1 million per tax year (£2 million if at least £1 million is in «knowledge-intensive» companies), provided shares are held for at least 3 years. Gains on EIS shares are CGT-free after 3 years; CGT on other assets can be deferred by reinvesting into EIS shares; losses qualify for income-loss relief; and the shares are usually IHT-free after 2 years via Business Relief. The company must have under 250 employees and gross assets ≤£15m before investment.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.