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Enterprise Investment Scheme (EIS) Tax Benefits

Key EIS Tax Benefits

The Enterprise Investment Scheme (EIS) is an attractive tax relief used to encourage private individuals to invest in unquoted companies.  It offers generous Income Tax, Capital Gains Tax (CGT) and Inheritance Tax benefits.

This section is for information only and should not be relied upon when making any investment decisions.  There is detailed information on the EIS scheme available from the Inland Revenue EIS website.

The key benefits of EIS can include:

  • Income tax relief of 30% of the amount subscribed for eligible shares
  • Exemption from Capital Gains Tax (CGT) on any gains from selling your EIS shares
  • Further income tax relief at top rate of income tax (40% or 45%) for any losses made on the disposal of EIS shares
  • Unlimited deferral of capital gains

Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future.

Example of EIS income tax relief

EIS example

Seed Enterprise Investment Scheme (SEIS)

350 PPM investments may occasionally be available under SEIS.

The rate of income tax relief given to SEIS investors is 50%. This is available to all tax payers, regardless of marginal tax rate.

Example of SEIS income tax relief

SEIS example