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Enterprise Investment Scheme (EIS)

EIS reliefs can be valuable but the tax provisions are long and complex.

We have extensive experience of the tax aspects EIS from both angles – we work with investors seeking to access reliefs and companies looking to raise money by way of an issue of EIS qualifying shares.

What we offer

We spend a lot of time looking at EIS issues and have a working knowledge of the beartraps that can – and frequently do – cause relief to be forfeited. Sadly there are many reasons for this whether by failing to qualify from the outset or by doing something later that causes relief to be withdrawn.

As a consequence of our combined experience we are well placed to guide companies and/or investors through the maze of legislation and guidance.  We have a summary of the provisions in our Briefing Note as a general guide as well as a flowchart testing a company’s qualification to issue shares under the scheme. However, we go much further than general guidance; we will work with you to understand the history as well as current overall planning on funding to make sure this is as tax efficient as possible. This is important, just a couple of examples: –

  • Do you know how to calculate the over-arching 30% test including connected parties? For EIS purposes, parents and descendants are connected and taken into account but siblings and in-laws are not
  • Were you aware that (almost) any shareholder holding shares that do not qualify for EIS can never make an EIS qualifying investment in that same company?
  • Did you know there is a huge difference in terms of effect on EIS relief on repayment of a loan depending on whether it was made before or after the EIS share subscription?

It is important to seek advice well before money is raised; we can help with structuring and qualification review and then assist with obtaining advance assurance of qualification from HMRC.

Once the funds are raised we can handle or advise on the tax compliance obligations – a lot of electronic forms (which cannot easily be part completed and saved!) – with HMRC and ultimately with providing certification to investors.

Once that is done, we would aim to work with you over the next growth phase of the business, reviewing your plans and testing the impact on existing investors.

Ultimately, we would hope to help you achieve the exit you want with your investors achieving their tax-free exit.

Corporate and Business Tax Specialists

Meet our people >

Why work with us?

We inspire confidence. We are recognised as a top 20 firm for tax in the UK and, with a significant proportion of our partners specialising in tax, you will benefit from exceptionally high levels of technical expertise and experience. We will advise you accordingly, enabling you to plan with realistic ambition.

  • Accessibility
    Accessibility

    4 Offices, London, St Albans, Rickmansworth and Milton Keynes

  • Cross Team Expertise
    Cross Team Expertise

    Joined-up advice across all services, including, Corporate Restructuring, Corporate Finance and Corporate and Business Tax

  • Sector Knowledge
    Sector Knowledge

    Advise a wide range of industries and sectors Sector-specific experience and insight

  • Specialist Knowledge
    Specialist Knowledge

    Knowledge on variety on services, such as, Remuneration, Research & development, Capital Expenditure and Patent Box Relief, EIS and SEIS and buying and selling a company

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