Enterprise Investment Scheme

Small and Medium Firms Raise over £1bn in Investment through EIS tax incentive scheme

More than a thousand start-ups obtain finance through the Seed Enterprise Investment Scheme The government’s Enterprise Investment Scheme (EIS), which launched in 1993 but was revised in 2012, has funded 2,400 small and mid-sized firms with investment totalling over £1bn, according to a new report. Additionally, EIS sister programme the Seed Enterprise Scheme (SEIS), which launched in 2012, has been found to have backed funding in 1,120 start-ups with investment totalling£83.7m altogether. In 2012 the government reformed EIS, enabling investors to fund larger businesses with more investment and to receive better tax breaks. The changes included increasing the maximum investment to £1m, eligibility to companies with staff numbers of up to 250 and revenues to £15m. Since the changes were int... »

Small Businesses Using the Enterprise Investment Scheme Jumps 16%

Record numbers of small and mid-sized businesses looking to Enterprise Investment Scheme for funding Small and mid-sized businesses receiving funding through the Enterprise Investment Scheme (EIS) rose a record 16%, with 372 more businesses using the scheme this year than 2011/12. A report by Chancery Investment Partners (CIP) shows that applications for funding through EIS by small and mid-sized businesses has increased consistently since 2008 but this year’s increase, which witnessed the number jump to 2,718, has been the biggest increase to-date. HMRC latest data revealed that the amount raised also reached a record high at £1,017m. EIS is designed to encourage private investment in smaller companies by offering investors generous tax breaks. In 2012 the government reformed the scheme, ... »

Enterprise Investment Scheme

The Enterprise Investment Scheme offers generous income tax and capital gains tax reliefs to investors in certain companies. The reliefs are available to ‘qualifying individuals’ who subscribe for ‘eligible shares’ in ‘qualifying companies’ undertaking ‘a qualifying business activity’. The regime is currently under review, but the consultation is ongoing. What are the investment limits? Individuals may invest any amount in Enterprise Investment Scheme shares. However, only the first £400,000 invested in any one tax year (£200,000 prior to the tax year 2006/07) will qualify for income tax relief and capital gains tax (CGT) exemption. For this purpose a husband and wife are treated separately. Individuals must subscribe a minimum of... »