Member Article

EIS is a direct investment in a small unquoted company, which meets strict HMRC criteria. The tax advantages of such an investment are:

• Income tax relief at 20% on a maximum investment of £500,000.
• Exempt from capital gains tax if held for more than 3 years
• Relief for capital loss on disposal
• Can be used to defer payment of capital gains tax on gains realised elsewhere (time limits apply).