The ins and outs of EIS investment

The Enterprise Investment Scheme (EIS) was created initially by the Conservative Government in the mid 1990s to encourage investment by individuals in small UK companies seeking capital for development or expansion. The Labour Government subsequently improved the terms offered to investors by decreasing the holding period and increasing the limits of allowed amounts. Both political parties have continued to support EIS over the past 15 years. The main driver to encourage investment into an EIS company or fund is the generous tax reliefs on offer: Income tax relief at 20%; No Capit...