Enterprise Investment Scheme Templates
The Enterprise Investment Scheme (EIS) is one of four HMRC approved venture capital schemes designed to encourage private investment into growing British companies by offering attractive tax reliefs. The scheme has been around since 1994. Both companies interested in seeking investment and individuals looking to make investments in unquoted companies may be interested in the scheme.
Investors can invest up to £1 million a year in new shares in an EIS qualifying company and benefit from income tax relief equal to 30% of the amount invested. The investor must hold the shares and follow the rules for EIS investment for at least 3 years after the investment is made to avail of the tax relief.
This subfolder of template documents includes guidance on the scheme as well as various templates that may be useful to companies considering EIS investment. These templates have been drafted in light of the scheme rules, however the templates are suggested starting points for drafting and we cannot provide any assurance as to their acceptability to HMRC. HMRC’s guidance on EIS can be accessed here. Note that these templates only relate to shares subscribed for when issued, in full in cash and will not be suitable for investors entering into Advanced Subscription Agreements.
It is strongly recommended that independent legal and tax advice is sought by companies or investors considering EIS investment.
Enterprise Investment Scheme Templates is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.
Frequently Asked Questions
What tax reliefs does EIS actually give our investors? +
Income tax relief of 30 percent of the amount invested, on up to 1 million pounds per tax year, or 2 million where the excess is invested in knowledge intensive companies, plus exemption from capital gains tax on the shares if held for at least three years with the conditions met throughout. Loss relief and capital gains deferral can also apply. The reliefs belong to the investor, but they depend on your company staying within the rules, which is why the scheme shapes company behaviour.
Is our company eligible to raise money under EIS? +
The headline conditions: unquoted trading company, within the size and funding limits, and the money must be used for a qualifying business activity. The limits rose substantially from 6 April 2026: gross assets up to 30 million pounds before the share issue and 35 million after, with annual raises up to 10 million and a lifetime cap of 24 million, higher again for knowledge intensive companies. Age and activity conditions also apply, so check the current HMRC guidance against your facts.
What is advance assurance and is it worth getting before we approach investors? +
It is HMRC's written indication, given before you issue shares, that your proposed investment is likely to qualify for EIS. It is not binding relief, but investors treat it as the gateway: many will not commit without it. Apply with details of your company, the planned raise and how the money will be used. Getting the structure right first, which the guidance and templates here support, makes the application itself straightforward.
Can EIS investors use convertible loan notes or advance subscription agreements with these templates? +
No, these templates cover the standard route only: new shares subscribed for in full, in cash, when issued. Advance subscription agreements and convertibles can be structured to work with EIS but carry specific HMRC conditions and are outside what this collection attempts. If an investor proposes one, take specialist advice rather than adapting these documents. For a conventional cash subscription the guidance and templates here are the right starting point.
What happens if we break the EIS rules within the three years? +
Your investors lose their relief: HMRC withdraws or claws back the income tax relief and the capital gains exemption can fall away, and the company must tell HMRC about disqualifying events. Common triggers include the investor becoming connected with the company, value being returned to investors and the money not being used for the qualifying activity in time. Build the three year discipline into board decisions after the raise; the guidance note here lists the danger events.
