Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme – also known as EIS – is a government programme that provides investors with potentially valuable tax reliefs when they invest in qualifying shares from companies that have been pre-approved by the government.

This type of investment provides the investor with some high risk options.  Because an EIS is complicated and interrelated with government legislation, the investor needs to work with a professional who is familiar with this specialised investment opportunity.

EIS offer the following tax reliefs:

• Income tax relief – the investment must be held in place for a set period of time to qualify for a tax break on the amount of money that has been invested.
• CGT deferral relief – tax gains on an asset different than the EIS investment can be deferred, as long as the asset was disposed of less than three years prior to the EIS or less than one year after the EIS investment.
• Inheritance tax relief – inheritance tax relief can be received on EIS shares if they have been held for two or more years.

To find out more about the Enterprise Investment Scheme, please contact your PK Group Advisor.  If you are a new customer, please do get in touch and one of our financial planning team will be happy to assist.