Qualifying for enterprise investment scheme

KEY POINTS

• Tax-efficient enterprise investment scheme relief for shares in a company.
• The subscription must be for newly issued shares.
• Income tax relief is by a tax reduction at 30% up to a maximum subscription of £1m.
• The reduction or part of it can be carried back to the previous year.
• The investor and associates must own no more than 30% of the company nor be employees.
• Special provisions allow a director to be eligible for EIS relief
• The company must meet specific conditions.
• An investment can be eligible for capital gains tax deferral relief.
• Capital loss on EIS shares can be set against income.

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