EIS
Enterprise Investment Scheme
Definition
A UK government scheme providing income and capital gains tax relief to investors who back qualifying growing companies, covering later-stage investments than SEIS with higher investment limits.
Why it matters
EIS approval signals credibility to investors and makes investing in a business significantly more financially attractive. Founders who secure EIS advance assurance unlock a larger pool of willing angel and institutional investors.
Example
A founder raising a £500,000 seed round secures EIS advance assurance before approaching investors. Investors can claim 30% income tax relief on their investment and pay no capital gains tax on any eventual profit, making the round considerably easier to fill.
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