Enterprise Incentive Scheme

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A tax relief scheme enabling you to save on tax when you invest in startups/early-stage businesses. Similar schemes:

• Seed Enterprise Investment Scheme
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• Venture Capital Trust
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• Social Investment Tax Relief
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• Community Investment Tax Relief
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• Individual Savings Accounts
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The scheme allows you to claim up to £1 million in relief when investing in qualifying startups. Increases to £2 million when investing in “knowledge-intensive companies.”
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Tax relief available:

• Income tax: 30% of investment can be claimed from April of the next tax year
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• Capital Gains tax: Holding the shares for 3yrs allows you to not pay any CGT when selling the shares for profit
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• CGT deferral: Selling the shares for profit and reinvesting all of it into another enterprise investment scheme means you don’t pay any CGT
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• Loss relief: If the startup fails and you lose money, you can claim relief on the loss

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