The Enterprise Investment Scheme (EIS)
The UK Government launched the Enterprise Investment Scheme (EIS) in 1994 to encourage investment into ambitious private companies with high growth potential.
The purpose of the EIS was that investment into early stage companies often carries a high risk of loss of capital. Alongside this, low market liquidity means that it may be difficult to sell or realise the investment. EIS lowers these associated risks by offering investors a number of incentives to counterweigh those risks. The intention is that an EIS company will be attractive to potential investors, thus helping it raise finance.
The reliefs available through the EIS are detailed further below. To find out more information please visit the HMRC website.