Just creating a new thread for some information on EIS (Enterprise Investment Scheme) given the upcoming Crowdcube round.
What is EIS?
The Enterprise Investment Scheme (EIS) is a series of UK tax reliefs launched in 1994 in succession to the Business Expansion Scheme. It is designed to encourage investments in small unquoted companies carrying on a qualifying trade in the United Kingdom. Tax relief of 30% can be claimed on investments (up to £1,000,000 in one tax year) giving a maximum tax reduction in any one year of £300,000, provided you have sufficient Income Tax liability to cover it.
How can I claim EIS on my Freetrade investment?
Visit the HMRC page for information on claiming EIS
Who is eligible for EIS? (View full list here)
- The investor may not have more than a 30% interest in the company
- No partner or associate of the investor (including spouse, relations, prior business contacts) may have other interests in the company
- The investor must not have any form of preferential shares
- The investor must not have any other form of controlling interest in the company
- The scheme must not be used for the purposes of avoiding tax
Examples of EIS relief
View examples based on a £10k investment here