The Enterprise Investment Scheme (EIS) is a UK government initiative aimed at encouraging investment in early-stage, high-growth businesses. To qualify, companies must be small, unlisted, carry on a qualifying trade, and employ fewer than 250 people.

Investors can put up to £1 million per tax year into EIS-eligible companies and receive significant tax benefits, including income tax relief, tax-free capital gains, and loss relief if the investment performs poorly. Companies must use EIS funds within two years of issuing shares or beginning trading.

EIS is a great boost for start ups as it attracts much needed investment in innovative companies at a crucial stage in their journey to revenue.

For investors EIS is a great incentive to back early-stage companies as it de-risks their investment if things don’t work out.

EIS is one of those UK Government tax initiatives that helps both the start up and the investors.

At 350ppm we work with clean tech start-ups with creative and award-winning ideas and EIS has been a major driver in attracting investment. One of our clients, EnviraBoard, an environmental alternative to plasterboard has benefited from EIS as many investors could see the huge potential in this product but wanted to de-risk their investment – see here for more details: https://enviraboard.com/register/

In the budget on 26th November we hope the Chancellor will recognise the value of EIS and maintain it – this is one of the best incentives that encourage investment and help to drive growth in the UK company.