Enterprise Investment Scheme


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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 ?
The second - the Seed Enterprise Investment Scheme (SEIS) - encourages investment in early stage companies by enabling investors (including directors) to receive initial tax relief of 50 per cent on investments up to PS100,000 and Capital Gains Tax exemption for any gains on the SEIS shares.
Tweaks to both the Enterprise Investment Scheme (EIS) and The Seed Enterprise Investment Scheme (SEIS) are proposed in the forthcoming Finance Bill and could threaten some businesses, particularly in the region's technology sector experts at Baker Tilly have suggested.
The Enterprise Investment Scheme (EIS) has been designed by the government to encourage private investment into small, high risk trading companies by offering a range of tax incentives.
Originally an extension of the Enterprise Investment Scheme (EIS), the SEIS was developed to encourage entrepreneurship and support the development of new ventures.
The new capital markets platform aims to connect seed enterprise investment scheme and enterprise investment scheme providers with investors.
The venture-capital initiative, called the (http://www.seis.co.uk/) Seed Enterprise Investment Scheme , or SEIS, was first introduced by U.K.
Under the Seed EIS programme (Enterprise Investment Scheme) individuals with capital gains liabilities will be able to plough up to pounds 100,000 into small companies, safe in the knowledge that tax breaks will limit their risk.
The Seed Enterprise Investment Scheme will apply to shares in companies issued on or after 6 April 2012, in the first two years following their incorporation.
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.
After its initial flirtation with Hollywood, when it backed 18 pics including "Twilight" and "Tropic Thunder," Goldcrest Finance raised a $50 million fund to back British films under the U.K.'s Enterprise Investment Scheme (EIS) tax shelter, and has since tapped further EIS coin.
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.

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