Established by the UK Government, the Enterprise Investment Scheme (EIS) provides individuals with the opportunity to support smaller UK businesses that otherwise may find it hard to get traditional finance. The long-established scheme has now supported over 26,000 individual SMEs and raised some £15.9 billion of funds, via a unique tax efficient structure for investors.
To date, Armstrong has deployed over £150m under the EIS and currently supports over 20 companies which operate under the scheme. Armstrong’s EIS offerings are focused upon early stage technology investments which have an environmental or social impact.
Subject to an investment being held for at least 3 years, EIS tax reliefs include:
- 30% income tax relief on the amount subscribed up to £1,000,000 per tax year, which can be carried back to the previous tax year
- Tax-free capital gain
- Inheritance tax relief after 2 years, provided the shares are still held at death
- Capital gains tax deferral relief
- Loss relief if an investment proves to be lossmaking. You can offset loss against income at your marginal tax rate or capital gains (net of any income tax relief you may have received)
Investments are not suitable for everyone. Therefore, we recommend you seek professional advice before deciding to invest. Capital at risk, please refer to the investment memorandum for each specific opportunity and the respective risk warnings, seeking independent financial, legal and tax advice.