What Is EIS?
EIS (Enterprise Investment Scheme) allows UK taxpayers, over the age of 18, to benefit from the following tax incentives, including:
- 30% upfront Income Tax relief – Up to 30% of the investment can be claimed back as income tax relief on the issuance of the EIS shares, subject to sufficient income tax. This may be clawed back by the HMRC if the qualifying shares are not held for at least 3 years.
- Tax-free gains
- Capital Gains Tax deferral – CGT due (or already paid) for up to three years previous or the coming year, can be deferred (or clawed back) by investing into EIS qualifying shares. This tax will be deferred until the disposal of the EIS shares.
- 100% Inheritance Tax exemption – EIS shares held for 2 years are exempt from IHT.
- Loss relief allowing losses to be set against income tax – Should the net investment be realised as a loss, further loss reliefs can cap the downside at 38.5p in the £1 for a 45% marginal rate tax payer.
We also offer investments that allow individuals who are UK resident but not UK domiciled to combine the EIS advantages above with Business Investment Relief in order to invest offshore funds in the UK without triggering an immediate tax charge.