An Enterprise Investment Scheme (EIS) is a government initiative designed to encourage individuals to invest in Britain's smaller private companies. To achieve this the Government offers EIS investors a range of tax reliefs. The tax advantages available from an EIS investment provide investors with a significant head start in comparison to mare traditional investment products.
Providing the underlying investments held by the EIS are held for at least 3 years, there are five separate tax advantages:
- 30% upfront income tax relief
- 100% inheritance tax relief after two years (provided investments are held at the time of death)
- 100% Capital Gains Tax Deferral for the life of the investment
- Tax Free Growth
- Loss Relief
To discuss how an EIS investment could help make your money work harder call us on 0845 371 0262 or 01732 617950