Can I invest into an EIS (Enterprise Investment Scheme)

So, 31st January has come and gone, tax has been paid. What can be done now?

For some people it may be….
For some people it might be possible to invest into an EIS (Enterprise Investment Scheme) and claim back 30% of the investment in tax relief, up to a maximum of tax actually paid. You have a choice of treating the investment has if it has been made in the previous tax for the purpose of claiming back income tax. An EIS has to be held for at least three years in order for the investor to keep the income tax relief.  EIS.png

For example, if you had paid income tax of £15,000 in year ending 2014, an investment in an EIS of £50,000 before the 5th April 2015 would enable you to claim £15,000 back from HMRC.

An EIS is an investment in a single company, often unquoted and so should be regarded as high risk and illiquid. That said, a number of companies specialise in facilitating EIS investments where there is an ‘exit plan’ and an aim, (but definitely not a guarantee) for investors to withdraw capital in three to four years.

EISs come in various shapes and sizes. For example you can have an EIS which invests into electricity generation.

An EIS scheme is a high risk, sophisticated product and not necessarily right for everyone, even if you do have a high tax bill. Those personal circumstances would determine if it is in your best interests.
Always take professional advice before you make any decisions of this nature.

See case study for a real working example of a client we have just carried out such planning >>

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