The investor’s field guide · E
EIS
The UK Enterprise Investment Scheme, which can provide tax relief for qualifying investment in eligible higher-risk companies.
Explained by the editorial team
The Enterprise Investment Scheme is a UK framework offering potential tax relief to investors who subscribe for qualifying shares in eligible companies. Conditions apply to the investor as well as the business and the share issue. EIS status should never be treated as approval of investment quality.
What to examine
Understand what the company has actually received from HMRC, which share issue is covered and what documentation investors require. Relief may depend on continuing to meet conditions and holding the investment appropriately. A statement about a company’s eligibility does not establish that every investor can claim.
Keep the risks in view
A qualifying company can fail, shares can remain illiquid and relief may be unavailable or withdrawn. Compare the underlying commercial case independently of any tax benefit. For current conditions and claim procedures, consult HMRC’s investor guidance. Get advice on your own circumstances rather than applying another person’s tax outcome to your investment. This is a general explanation of a UK scheme.
General information, not investment, legal or tax advice. Examples are illustrative. Read the disclaimer.