EIS investments explained [2023] – Enterprise Investment Scheme

What are EIS investments? Why invest under the UK’s Enterprise Investment Scheme? This video explains how EIS investments could give experienced investors exposure to small companies – with five generous tax benefits to cushion the risks.

The young, growth-oriented companies that qualify for EIS investment are high risk, so the Government provides generous tax incentives. EIS investors can invest up to £1 million each year and receive up to 30% income tax relief. Investors can also defer unlimited capital gains. Any income and growth is tax free; any losses can be offset against income tax. The value of your investment can also be IHT free after two years. And investing in what HMRC defines as “knowledge intensive companies” could double your annual allowance. Remember, tax rules can change and benefits depend on circumstances.

Watch this video for a concise and helpful explanation of how EIS investments work. To find out more about EIS investments please visit https://www.wealthclub.co.uk/eis-expl....

IMPORTANT This video, like our service, is not advice and the products featured are not suitable for everyone. EIS investments are high risk, usually illiquid, and you could lose your capital. If you’re unsure an investment is right for you, please seek professional advice.

Contents:
0:00 What is the Enterprise Investment Scheme?
0:44 What kind of companies get EIS investment?
2:10 EIS Income tax relief
2:47 EIS Capital gains tax benefits
3:33 An example £100,000 EIS investment
4:26 EIS Loss relief and IHT relief
5:16 Risks, rules and where to find out more