Enterprise Investment Scheme

English Legal System: Enterprise Investment Scheme

In the context of the English law, A Dictionary of Law provides the following legal concept of Enterprise Investment Scheme : (EIS)

A scheme to encourage investment in unquoted companies; it replaced the similar Business Expansion Scheme on 1 January 1994. It gives income tax relief of 20% on investments to individuals who invest from £500 to £150,000 in anyone year in shares issued by UK trading companies not quoted on the Stock Exchange. Shares issued under this scheme are also exempt from capital gains tax. Investors can hold paid directorships of the companies; there is also income and capital gains tax relief on losses. Companies providing private housing on assured tenancies are excluded from the scheme.