Enterprise Investment Scheme
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.