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Tax reliefs under the enterprise investment scheme (EIS) can be summarised as follows:

1. •

   income tax relief for the investor of up to 30% of the amount invested

2. •

   disposals of EIS shares after three years may be free from CGT

3. •

   capital gains deferral relief allows investors disposing of any asset to defer gains against subscriptions in EIS shares

4. •

   losses on EIS shares may be offset against taxable income

5. •

   EIS investments should qualify for IHT business property relief after two years’ ownership

EIS reliefs are available to individuals only, except for EIS deferral relief which is also available to trustees.

EIS reliefs are available to UK residents. UK non-residents only qualify for some EIS reliefs; they are not eligible for deferral relief or relief for on losses on disposals of EIS shares.