The Enterprise Investment Scheme (EIS) was introduced by the Finance Act 1994, replacing the existing Business Expansion Scheme, and applied to shares issued on or after 1 January 1994. The EIS was implemented to help stimulate investment in small, high-risk trading companies by offering a range of tax reliefs to investors who purchased new shares in those high-risk trading companies. The Finance Act 1995 broadened the tax reliefs available by introducing Capital Gains provisions. The EIS is subject to the requirements of the EU State Aid for Risk Capital guidelines.
Following the success of the EIS and recognition that very early stage companies face particular difficulties in attracting investment the Seed Enterprise Investment Scheme (SEIS) was introduced in the Finance Act 2012. The SEIS complements the Enterprise Investment Scheme and applies to shares issued on or after 6 April 2012.
We assist our clients who are looking for investment by advising them on the benefits and availability of each scheme.
Our work includes:
- Confirming eligibility – which may involve approaching HMRC for pre- approval.
- Considering the position of existing employees and Directors who are intending to invest.
- Obtaining final HMRC approval and dealing with the administration of the scheme.
For further information please contact us.