ONSIDE / ACCELERIS Q&A
EIS GOES MAINSTREAM
All you ever wanted to know about investing through EIS but were afraid to ask.
Simon Thorn has the answers to Michael Taylor’s questions.
Q: I would like to know more about the Enterprise
Investment Scheme and investment in EIS
qualifying companies.
The Enterprise Investment Scheme (“EIS”) was set up in
1993/4 and since then over £11 billion has been invested
into more than 20,000 companies. In the most recent tax
year for which HMRC statistics are available (2011/12),
over £1 billion was raised under EIS.
Q: What are the main reliefs available?
Simon Thorn,
Acceleris
A: EIS provides tax breaks for qualifying investors and was
designed to stimulate investment into UK based businesses.
The main reliefs available to private investors are an income
tax relief on the cost of the investment (currently 30%) and
an absolute capital gains tax exemption if the investment is
sold at a profit in the future.
Q: On what basis should investors approach
investments using EIS?
A: All individuals investing under EIS, particularly those
new to EIS investment, should seek a portfolio of EIS
investments to mitigate risks. This EIS portfolio should
also form a minor element of a larger overall investment
portfolio.
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