Enterprise Investment Scheme


Also found in: Dictionary, Wikipedia.

Enterprise Investment Scheme (EIS)

a facility introduced in 1994 which offers income tax relief on equity investments in unquoted companies. The EIS (which replaced the Business Expansion Scheme (BES)) is aimed at assisting smaller businesses in the manufacturing and services industries to raise new capital without having to obtain a STOCK MARKET listing. The scheme specifically excludes investments in private rented housing which had been widely used under the previous BES as a means of avoiding tax.

Under the EIS individuals can invest up to £200,000 in a company writing off the price paid for their shares against their income tax assessment, and can also become paid directors of the companies they invest in without losing entitlement to tax relief. See INVESTMENT INCENTIVE.

Enterprise Investment Scheme (EIS)

a facility introduced in 1994 that offers income tax relief on equity INVESTMENTS in unquoted companies. The EIS (which replaced the Business Expansion Scheme) is aimed at assisting smaller businesses in the manufacturing and service industries to raise new capital without having to obtain a STOCK EXCHANGE listing.

Under the EIS, individuals can invest up to £200,000 in a company, writing off the price paid for their shares against their income tax liability. See INDUSTRIAL POLICY.

References in periodicals archive ?
Tax-law experts say that it would be a substantial improvement over the government's current Enterprise Investment Scheme, or EIS, which provides investors with tax holidays of about 30 percent and opportunities to claim income-tax and capital-gains benefits by repurchasing shares of venture-capital trusts listed on the London Stock Exchange.
TAXATION: * Small retailer exemption extended from October 2012 to April 2013 * Seed Enterprise Investment Scheme extended so anyone investing up to [pounds sterling]100,000 in a start-up with assets of less than [pounds sterling]200,000 will be eligible for 50% income tax relief * Enterprise Zones in areas including the Black Country, Liverpool and Sheffield
On other key points, he added: "Small businesses are struggling to access finance and so the enterprise investment scheme will open up new sources of finance for new and growing businesses.
s Enterprise Investment Scheme, which offers investors tax relief, in a bid to raise an initial $3.
The future plan of action for SMEs should include a favourable tax system for companies making long-term investments, building on the UK's Enterprise Investment Scheme, according to European Family Businesses (GEEF).
CHANGES to the Enterprise Investment Scheme - which has the aim of helping small but high-risk companies raise finance by offering significant tax relief - allied to the strength of the Australian breeding sales could affect those schemes that relate to bloodstock, according to Breeding Capital managing director William Sporborg.
The share offer is being run as part of the Government's Enterprise Investment Scheme, which allows small, high-risk companies to raise finance by offering investors tax breaks.
To enable certain placees to take advantage of Venture Capital Trust and Enterprise Investment Scheme tax treatment, it is proposed that the placing shall comprise two closings.
This Government is committed to supporting business and the Budget included a number of measures to encourage productivity growth including support to help small firms access the resources they need to start up and grow through the Small Firms Loan Guarantee, enhancements to the Enterprise Investment Scheme and Enterprise Management Incentives and a package of regulation and tax simplification reforms.
Q IAMinterested in investing in an Enterprise Investment Scheme to defer paying capital gains tax when I cash some unit trusts.
Designed by accountancy firm Baker Tilly, the scheme means that investors in high-tech start-ups can save up to 40 per cent tax relief on the money they invest--double the tax relief offered in the enterprise investment scheme.
Minimum investment is pounds 1,500 and, because this is a risky start-up, shares can be held through the Enterprise Investment Scheme which allows tax relief at 20 per cent of your input.

Full browser ?