What is EIS (Enterprise Investment Scheme)?

We've updated this guide on 3rd July 2019

The Enterprise Investment Scheme (or EIS) is an incentive set up by UK government to encourage individuals to invest in small businesses.

It offers quite a few tax reliefs to investors:

1. Tax reliefs when you invest

30% Income Tax Relief: for £10,000 investment, your income tax is reduced by £3,000 that year. If your tax bill for the year is less than the relief you can “Carry Back” some or all of it to the previous tax year.
Capital Gains Deferral Relief: your CGT can be deferred when the gains are invested in EIS qualifying company.

2. Tax reliefs when you exit your investment

100% Capital Gains Tax Exemptions: all your gains from selling your EIS shares are exempt from Capital Gains Tax. They must be sold 3 years or after and you must have claimed some Income Tax Relief
100% Loss Relief: your net losses can be set against your Income or Capital Gains Tax.

3. Additional reliefs

100% Inheritance Tax Relief: the inherited shares get full IHT relief in case of the investors death after 2 years.

How to invest in EIS companies

We strongly recommend you take advantage of EIS (and also SEIS, a similar scheme, but focused on even smaller, younger companies).

You can easily find EIS eligible companies through:

The maximum amount you can invest is £1,000,000.

Can TaxScouts help with EIS reliefs?

Of course.

Our accountants can tell you exactly what information we need from you, then file your Self Assessment tax on your behalf.

More guides & useful information

How TaxScouts works

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.