Enterprise Investment Scheme - EIS

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EIS Rates & thresholds

Details2018/192019/20
Income Tax Relief 30% 30%
Minimum Investment N/A N/A
Maximum Investment £2m* £2m*
*The extension of the annual limit for investment to£2 million only applies if the additional investment over and above £1 million is made into a "Knowledge Intensive" company.

  • EIS relief is capped at the lower of 30% of the investment or the individual’s income tax liability.
  • The relief applies to cash subscriptions of newly issued ordinary shares in unquoted UK companies that satisfy the HMRC criteria.
  • Additional reliefs may apply such as the ability to carry back the investment to a prior tax year or deferral relief for capital gains and, after two years, 100% business property relief for Inheritance Tax Relief may be withdrawn if the shares are sold within a certain period.
  • Partial relief for the loss on the disposal of EIS shares can be relieved against income or capital gains. The shares may be sold free of capital gains tax, subject to certain conditions.
  • If you are deemed to be connected with a company, EIS relief may not be available or could be withdrawn.
  • Such investments should be discussed with an independent financial adviser who will consider the risk of the particular investment.
  • Professional tax advice should be sought before making this investment.

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Related pages:

Get further information from the following pages;

SEIS

VCT

Income Tax Rates

Income Tax Allowances

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