What is EIS (Enterprise Investment Scheme)?

The Enterprise Investment Scheme (EIS) offers UK investors 30% income tax relief on investments of up to £1 million per tax year (£2 million for knowledge-intensive companies) in qualifying growing businesses. Qualifying shares must be held for at least three years; after this period, any gains are exempt from CGT and losses can be offset against income tax. EIS also provides inheritance tax relief via Business Property Relief. The company must be an unquoted trading business with gross assets below £15 million and fewer than 250 full-time employees.