EIS Investment Opportunities
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) is a UK government initiative designed to support smaller, early-stage companies that may be seen as higher-risk by investors. Companies awarded EIS pre-approval by HMRC can raise finance by offering individual investors tax relief on new share purchases.
At NCL, we are proud to back many of these early-stage companies, as it not only drives job creation but also strengthens the overall economy. For investors, EIS provides an exciting opportunity to get involved at the earliest stages of a company’s growth, potentially leading to substantial returns. Combined with significant government tax breaks, EIS investments help mitigate risk while offering a range of attractive tax benefits, making these opportunities highly appealing.
Main Reasons to Invest:
- EIS and Income Tax relief: Under EIS, you get 30% back of the amount you invest as a reduction in your Income Tax bill.
- Capital Gains disposal relief: When you come to sell your shares, usually you’d pay Capital Gains Tax (CGT) on the profit you make. With EIS, you get to keep it all.
- Capital Gains deferral relief: You can use the Enterprise Investment Scheme (EIS) to defer payment of an existing Capital Gains Tax (CGT) liability to a later year. By reinvesting the gain from disposing of another asset into an EIS-qualifying company, you can treat the gain as if it occurred in a later year.
- Loss relief: If you haven’t made a profit when you come to sell your shares, you can set that loss against your Income Tax bill.
- Inheritance Tax relief: EIS shares aren’t subject to Inheritance Tax, so long as they have been held for two years.
Investment Particulars
Tax Relief
EIS provides significant tax benefits, including income tax relief, capital gains tax exemption, loss relief, and inheritance tax relief, reducing the investment’s net cost.
Portfolio Diversification
The inclusion of EIS opportunities offers investors further diversification when included in a portfolio, potentially lowering overall portfolio risk.
Access to New Markets:
Investing in EIS opens opportunities in new technologies and emerging markets as many new companies employ cutting-edge methodologies.
Long-term Gains
EIS investments are long-term, offering the potential for substantial capital growth.
Seed Enterprise Investment Scheme (sEIS)
NCL is launching a pre-pledge programme aimed at investors who seek opportunities at the earliest level. With the demand from investors for EIS investments, the demand for Seed Enterprise Investment Scheme (SEIS) approved offerings is even greater due to the greater tax breaks. Limited to only the first £250,000 SEIS is often raised soon before most investors have the opportunity to review detailed presentations.
At NCL, we have exclusive access ahead of pre-approval from HMRC. If you are interested in being part of our new programme, then apply today to find out more.
An investment with our product providers are created with security and transparency in mind, offering you the confidence you need when making an investment.
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