Insight is better
than hindsight
The purpose of the Enterprise Investment Scheme (EIS) is to help certain types of small higher-risk unquoted trading companies to raise capital. It does so by providing income tax and CGT reliefs for investors in qualifying shares in these companies.
There are really two separate schemes within the EIS:
• a scheme giving income tax relief on the investment and a CGT exemption on gains made when the shares are disposed of; and/or
• a scheme aimed at providing a CGT deferral.
An individual can take advantage of either or both of these schemes.
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