Enterprise investment scheme
An up-to-date version of ‘An Introduction to the Enterprise Investment Scheme (EIS)’ is now available. It contains an overview of the scheme in two main sections. The first deals with the EIS from the standpoint of an investor and the second part from a company’s perspective.
The scheme is intended to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
The coalition Government’s June 2010 Budget announced changes to the capital gains tax rules. With effect from 22 June 2010 it is no longer possible to defer existing capital gains under the EIS rules and for them to qualify for Entrepreneur’s Relief.
It is important that investors and companies are aware of the complicated rules which govern the EIS to ensure that the intended tax reliefs are secured wherever possible.