EIS funds - investments with a difference

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Bagshot
Surrey
GU19 5AH

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Income Tax Relief


Introduced in 1995 as a successor to the BES schemes, Enterprise Investment Scheme companies and EIS approved funds (such as the Lacomp British Enterprise EIS Funds) offer extremely attractive tax breaks.  Both individuals and Trustees can apply for investment - see the brochure for details.


Individuals (including husbands and wives separately) can each claim 30% income tax relief on the costs of investment in EIS Qualifying Companies (up to £500,000 per annum) against their individual income tax liability for the tax year during which the Fund closes.

From tax year 2009-10, an Investor can elect to carry back an EIS investment for the purpose of claiming EIS income tax relief in the previous tax year.  This carry back facility is capped at £500,000 in line with the annual EIS allowance.

The shares in the EIS Qualifying Companies must be held for at least 3 years.  Furthermore, neither the Investor (nor the spouse) must be connected with the Qualifying    Company (broadly, as an employee, partner or director or as a shareholder other than through the Fund) either within two years before or three years after the Fund invests in the EIS Qualifying Company. Any breach of these conditions would mean that EIS Relief would not be available.

Example:

£
Initial Investment (net of charges) 50,000
Less Income Tax Relief @ 30% (15,000)
Net Cost of Investment 35,000