Alix Hill looks at key features of the enterprise investment scheme and seed enterprise investment scheme.
The EIS (enterprise investment scheme) and SEIS (seed EIS) both offer tax incentives to encourage investment in smaller companies not listed on any recognised stock exchange.
Each scheme has detailed requirements to be met by the investor, the issuing company, and the shares issued, as summarised below.
EIS - income tax relief
Where a ‘qualifying investor’ subscribes for shares in a ‘qualifying company’ and these shares meet certain requirements, the investor receives income tax relief at 30% on their investment up to £1 million per tax year, plus up to £1 million for knowledge-intensive companies (KICs) (ITA 2007, Pt 5).
For EIS
