Enterprise Investment Schemes (EIS)

An Enterprise Investment Scheme (EIS) is a government initiative designed to encourage individuals to invest in Britain’s smaller private companies. To achieve this, the Government offers EIS investors a range of tax reliefs. These schemes have just been given a big boost in the Budget, and now offer individuals even more tax incentives to invest.

The tax advantages available from an EIS investment provide investors with a significant head start in comparison to more traditional investment products. They are particularly suited to investors with income tax liabilities, or those with capital gains to defer.

A word of warning from us: do not let the tax tail wag the investment dog! – only invest in fundamentally sound businesses, and don’t be tempted by tax breaks.

Important Information

Please remember that the value of an investment in these products may fall as well as rise, and an investor may not get back the full amount invested. Tax treatment is dependent on individual circumstances and may be subject to change. These products will invest in small companies which, by their nature, will have a higher risk profile than larger companies.

The Benefits

Providing the underlying investments made by the EIS are held for at least three years, there are five separate tax advantages:

  • 30% upfront income tax relief
  • 100% inheritance tax relief after two years (providing the investments are held at time of death)
  • 100% capital gains tax deferral for the life of the investment
  • Tax-free growth
  • Loss relief

Please read this guide to learn more about Enterprise Investment Schemes.

Just a quick message to say a huge 'Thank You' for taking the time to 'conference call' us today to reassure us & give us all that information & guidance regarding Rob's American Optical Pension Plan. We are happy now, that we are making the right decision to take the benefit as a monthly income for life.

You always explain things in such a way that makes it all makes sense.

- Christine & Rob, Private Clients