Enterprise Investment Scheme (EIS): Who Qualifies and What You Get
Learn how the Enterprise Investment Scheme provides tax relief to investors supporting established startups looking to scale their operations.
The Enterprise Investment Scheme is a program designed to encourage investment into growing businesses by offering significant tax incentives to those who provide capital.
Who it's for
This scheme is for established startups that are looking to secure larger amounts of capital to help their business scale up.
What you get
Investors who put money into qualifying businesses can receive 30% income tax relief on their investments, up to a limit of £1 million.
What it costs you
To benefit from this, businesses must strictly follow specific government rules regarding "risk to capital" conditions to ensure the investment is used correctly.
The catch to know
You cannot be connected to the investor through employment or ownership; the investor must be an outside party to qualify for the benefits.
How to apply
- Ensure your business meets the specific criteria for qualifying companies.
- Confirm that your investors meet the necessary requirements for tax relief.
- Follow the official guidance on compliance and reporting.
- Visit the official portal for more details: https://www.gov.uk/enterprise-investment-scheme