Enterprise investment scheme (EIS) is a venture capital scheme designed for companies to raise money with the help of individual investors, for growth and development of the business.
It offers generous tax reliefs to the individual investors who buy new shares in the company. Individuals investors can claim a repayment of 30% in income tax on their investment and any profit made from selling of shares will be tax exempt. There are many rules related to EIS scheme and every year new rules are adding to it. The company must comply with EIS rules for at least 3 years after receiving the investment. If it follows EIS rules properly, the investors will be able to claim and keep EIS tax reliefs otherwise tax reliefs will be withheld or withdrawn from the investors.
Every company must strictly comply with EIS checklist containing all EIS rules, to ensure their investors can claim tax reliefs on the amount they invested in the company in the form of shares.
Enterprise investment scheme (EIS) Checklist
If you will follow the above mentioned EIS checklist, it will contributes to your business growth and your investors will get the opportunity to claim EIS tax reliefs on the amount they invested in your company in the form of shares.
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