Enterprise Investment Schemes (EIS)

These were introduced by the government to encourage investment in small unquoted companies. Typically they involve a larger degree of risk than investments in larger companies, such as those traded on the London Stock Exchange and may therefore not suit everyone. Advise should always be sought before investing.

Investors may be eligible for the following tax reliefs:

  •  30% unfront income tax relief on investments up to £1 million for the current tax year, as long as they keep their EIS shares for at least three years
  • 100% inheritance tax relief after two years, provided they still have the EIS shares at the time of death
  • Capital gains tax deferral for the life of the investment
  • Tax-free growth, provided the investor qualifies for income tax relief