ARTICLE · 31 AUGUST 2012

Enterprise Investment Scheme

Smith & Williamson

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The Enterprise Investment Scheme (EIS) is becoming increasingly popular for businesses in the sustainable technology sector as a way of attracting finance.

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The Enterprise Investment Scheme (EIS) is becoming increasingly popular for businesses in the sustainable technology sector as a way of attracting finance. The EIS seeks to encourage individuals to invest equity in qualifying companies by providing those individuals with tax reliefs.

Some of the benefits for investors are as follows.

Income tax relief of up to 30% on the amount invested in qualifying investments of up to £1,000,000 per tax year per person.

If an investor holds EIS shares for at least three years (or for at least three years from when the company starts trading if later), upon disposal any gain arising would be exempt from capital gains tax, provided EIS income tax relief has been given and not withdrawn.

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