Enterprise Investment Schemes (EIS)
 
The taxman permits you to invest up to £500,000 a year
into a unquoted company and enjoy benefit tax advantages.
This is designed to encourage investors to put money
into smaller companies that constitute a higher risk investment.
 
The tax breaks are:
• Income tax relief available at a rate of 20%.
Therefore for every £1,000 invested the taxman gives you back £200.

• Capital gains tax exemption if held for three years.
 

• Unlimited capital gains tax deferral - you can defer paying a CGT bill by reinvesting in an EIS.

• Relief against losses, which you may suffer on disposal.
If your investment goes wrong and falls in value one consolation is the losses
you've notched up can be set against any other profits you've made.

To claim the above tax benefits you must invest for a minimum of three years and meet additional criteria.
 

Please be aware this information can and does change and may be out of date so please do not rely on it.