Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Give me a break

15 November 2011 / Andy England , Jeremy Rayment
Issue: 4330 / Categories: Comment & Analysis , Business , Income Tax , Investments
ANDY ENGLAND and JEREMY RAYMENT explain why advisers should recommend the EIS to investment-hungry entrepreneurs


  • The importance of the EIS as a source of business funds.
  • Forthcoming increased availability of the EIS reliefs.
  • Advance clearance from HMRC can be obtained.
  • ITA 2007 limitations on preferential rights for shares.
  • The tax reliefs help to minimise the investors’ risks.

The enterprise investment scheme (EIS) was introduced in 1994 to encourage investment in small and medium-sized businesses and has been pretty successful.

Statistics show that by November 2010 just over £7.5bn of subscriptions had been raised under EIS in the years up to 5 April 2009; and indeed almost £2bn was raised in the last three years alone.

The scheme offers valuable tax breaks for ‘qualifying’ individuals investing in ‘qualifying shares’ in ‘qualifying companies’.


If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon