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Enterprise Investment Scheme
In a world that shuns risky investments and favours lower-risk but lower yield returns, investors sometimes need a little nudge in the right direction to help new companies. That's where the Enterprise Investment Scheme comes in.
What is the Enterprise Investment Scheme?
The Enterprise Investment Scheme (EIS) is a government-funded scheme to provide attractive tax breaks and incentives to investors willing to provide funding for higher-risk companies. It's a way of providing much needed money to young businesses and a worthwhile incentive to jittery investors. The investors buy shares in the company, providing capital for the business and hopefully, a return for the investor.
Can I take advantage of these tax breaks?
As you would expect, there are criteria to be filled before you qualify for any of these breaks. The first is to be a "qualifying individual", that is to say someone who invests in a company included in the scheme.
Secondly, they have to be "eligible shares." Eligible shares are standard shares offered with no preferential rights to the investor. Finally, the company itself has to be a "qualifying company."
How do I know if a company is "qualifying"?
From 6 April 2012, the assets of a qualifying company must not exceed £15 million prior to investment (£16 million post); the company must not have already raised more than £5 million in the previous year from EISs or VCTs; and must also have fewer than 250 employees.
Benefits of the Enterprise Investment Scheme
What are the incentives for investing in an EIS Scheme?
Tax relief is always a big draw for investors, and the 30% income tax relief allowable through this scheme is certainly attractive. As is the absence of capital gains tax once the shares are sold.
To add an extra sweetener, the investor also receives a deferral on other capital gains taxes when applied to the shares. This can be used in conjunction with entrepreneurs relief if the parties qualify too.
The Enterprise Investment Scheme is just one way the government is attempting to liven up the sluggish investment market. It's an ideal way for young businesses to raise much needed capital, and a great way for investors to invest in EIS investment.
How can I invest?
If you're now looking to invest in an EIS scheme, we have a wide selection of open EIS Investment Offers which would benefit from the full suite of tax advantages. Our Offers range from those specialising in Renewable Energy to Leisure & Media Offers and BPRA Offers. Simply peruse the Open Offers on our site and please do not hesitate to contact us as per the details at the bottom of the page should you have any queries or require any assistance.
Click here to read our Top 4 Points of the Enterprise Investment Scheme.
Enterprise is pleased to announce the following open offers.
| Imbiba London Bar and Restaurant EIS... |
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| The Rural Broadband EIS Fund |
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| The Three Stones Media EIS Fund |
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| The Merepark Solar EIS Fund 2 |
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| Renewable Heat Energy EIS Offer |
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| The Seaside Company Dorset EIS Offer |
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| Water Babies Musical UK Limited |
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| SEIS Investment Opportunities |
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Contact us
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| © Enterprise Investment Partners 2013
Enterprise Investment Partners is a trading name of Enterprise Private Equity Limited
Enterprise Private Equity Limited is authorised and regulated by the Financial Conduct Authority
Registered in England No. 2708653. Registered Address: Apsley House, 176 Upper Richmond Road, London, SW15 2SH |
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