Enterprise Investment Scheme (EIS): tax tips and pitfalls

Jonathan Amponsah, CEO and founder of the Tax Guys, outlines the pros and cons for investors when entering an Enterprise Investment Scheme (EIS) as well as the various compliance issues to claim the tax relief

Imagine your company has been trading for less than seven years. It is growing and expanding and you need some injection of cash to grow and develop it further. You do not fancy being grilled in the dragons den but neither do you want to approach a bank.

However most investors are savvy and want to hedge their bets and reduce their risks. Let’s say you need to raise £100,000.  

What if you could persuade an investor that worst case scenario, they are guaranteed to get 61.5% of their investments? And if it all goes well, they will get their investment back plus 30% tax back and not pay a penny in tax when they sell?

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe