Enterprise Investment Scheme

The EIS was first established in 1994. It provides a range of tax incentives to encourage medium term investment into smaller, unquoted companies.

Well over £1 billion was raised under the scheme in 2014/15 so it has been a popular success. However, this covers a wide range of proposals from those attempting to take as little risk as possible under the regulations, to those backing speculative start-up ventures.

Some promoters offer an EIS portfolio solution, in which investment is spread across several companies to diversify risk. Unless you are experienced at analysing individual unquoted companies we strongly recommend the portfolio approach.

EIS has a host of tax reliefs which offer a wide range of tax planning opportunities. However, in all cases the fundamental issue will be the performance of the investments. Careful selection is absolutely vital.

Selected EIS Offers

EIS
Structure
Closing DatesMin
Investment
Capital Growth (What does this mean?)
Downing Ventures EISDiscretionary PortfolioEvergreen*£15,000

A discretionary managed EIS portfolio service with a sole focus on investing in high growth technology businesses that are likely to disrupt large markets through “game changing” technology.

Seneca EIS Portfolio ServiceDiscretionary PortfolioEvergreen*£25,000

A sector agnostic EIS portfolio service seeking to invest in a portfolio of four to six established private and AIM listed investment opportunities.

Capital Preservation (What does this mean?)

* Evergreen offers do not have a formal closing date

How to invest

EIS schemes are classified by the FCA as Non Readily Realisable Securities. These can only be promoted to investors who seek regulated advice, are classified as High Net Worth or Sophisticated investors or are prepared to certify that they will invest less than 10% of their net investable assets in such securities. If you fall into any of these categories, please contact EQ for further information.

Important Information

The information set out above is included for information purposes only and is not an offer or an invitation to buy or sell or a solicitation of an offer or invitation to buy or sell or enter into any agreement with respect to any security, product, service or investment. Any opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. All information is current as of the date of publication, subject to change without notice, and may become outdated over time.

Links to third party sites or pages are for information purposes only and such sites and pages are not part of this website or the responsibility of EQ Investors Limited and have not have been reviewed or verified by EQ Investors Limited. Following links to or from any other sites or pages shall be at your own risk.

EIS schemes should be regarded as higher risk investments, suitable only for experienced investors who are able to withstand losses or for investors only investing less than 10% of their investable assets.