EIS Income Tax relief

Individuals can claim income tax relief of up to 30% of the amount subscribed for EIS-qualifying shares*.

The maximum investment in EIS qualifying companies which qualifies for EIS Income Tax Relief is £1 million in a tax year, and the income tax relief is restricted to the amount that reduces the individual’s income tax liability to nil.

EIS investments made at any time within a single tax year may be carried back and treated as if they were invested in the previous tax year, subject to the maximum EIS tax relief available for that year.

*Some or all of the income tax relief obtained may be withdrawn if, during the Three Year Period, the shares are sold or otherwise disposed of, or the Investee Company loses its EIS-qualifying status.



Example of Income Tax relief

Mr Blogs invests £100,000 in EIS qualifying companies through the MMC EIS Fund. By doing so, Mr Blogs is entitled to reduce his income tax liability by a maximum of £30,000 (30% of £100,000) in the tax year that the Fund subscribes for shares in the EIS qualifying companies.

Alternatively, he can claim for some or all of his income tax relief to be carried back to the previous tax year.


Other tax reliefs available under the Enterprise Investment Scheme:

Capital Gains Tax deferral

Tax-free Capital Gains

Inheritance Tax relief

Loss relief



You should note that the favourable tax treatment outlined above may not continue in the future and that other taxes or costs may arise which are not paid through MMC or imposed by MMC. The information in this document has been drafted on the basis that each Investor is an additional rate taxpayer, the additional rate being and 45% for 2016/17. If you are in any doubt about your tax arrangements, you should contact a qualified tax adviser for appropriate tax advice.



You Might Be Interested In



You Might Be Interested In



You Might Be Interested In



You Might Be Interested In
Request For Information
Important notice