Enterprise Investment Scheme

    Invest in innovative early stage companies with high growth potential, while benefiting from attractive tax benefits. 

    What is EIS?

    The Enterprise Investment Scheme (EIS) is a UK government initiative launched in 1994 to encourage investment in early stage businesses with high growth potential. Its primary goal is to stimulate economic growth by providing investors with attractive tax incentives to support these innovative, but often high-risk companies, that may otherwise struggle to secure funding. 

    EIS helps bridge the funding gap for smaller, emerging businesses in the UK and provides investors with a way to support the next generation of innovative UK companies through a tax efficient vehicle.

    Reasons to invest in EIS

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    Attractive tax reliefs

    30% income tax relief, deferral of capital gains tax (CGT) on the amount invested, exemption from CGT on any investment value growth, and 100% inheritance tax relief when shares are held for at least two years.

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    Diversification benefits

    A key attraction of investing in EIS is its capacity for diversification. EIS investments typically diverge from the patterns of traditional listed markets, providing a potential buffer against negative market trends and unlocking opportunities absent in the traditional 60/40 portfolio structure.

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    High growth potential

    EIS backs dynamic, innovative companies operating across some of the UK's most vibrant and cutting edge sectors. These businesses often lead the way in developing or applying new technologies, disrupting markets, and offering significant growth potential.

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    Backing British

    Since its launch, EIS has invested more than £32bn of private investment into over 56,000 ambitious businesses. This vital capital has helped bridge the growth funding gap for emerging UK companies that might otherwise have struggled to secure the investment they need to succeed.

    Who is EIS suitable for?

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    Higher Risk Tolerance

    EIS investments involve high growth, innovative companies, and carry the risk of capital loss. Investors must be willing to accept the higher risk associated with early stage businesses.

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    Being Tax Efficient

    EIS offers up to 30% income tax relief, capital gains tax deferral, and inheritance tax benefits, making it an attractive option for reducing tax liabilities.

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    Longer Term Strategy

    EIS investments typically require holding periods of 7 to 10 years or more, providing patient investors with the potential for significant returns over time.

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    Seeking Diversification

    EIS allows investors to access sectors like technology, healthcare, and clean energy, adding a unique asset class to a diversified portfolio which is uncorrelated to public markets.

    EIS investments are considered to be very high risk, are designed to be held for the long term and are generally illiquid. They are not suitable for everyone. Investors should not invest money they are not prepared to lose. Tax rules can change, and benefits depend on circumstances. 

    Open Funds

    Maven Cognition EIS Fund

    The Fund provides a compelling investment opportunity for experienced investors to diversify their portfolios, build wealth and generate income through investment in dynamic tech-led UK smaller companies via the tax efficient structure of EIS. 

    Learn more

    Frequently asked questions

    What is EIS?
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    EIS (Enterprise Investment Scheme) is a UK government initiative designed to encourage investment in early-stage, high-risk companies by offering tax reliefs to investors.

    How does EIS work?
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    EIS works by offering investors tax incentives, such as income tax relief, capital gains tax exemption, and loss relief, in exchange for investing in qualifying small businesses.

    What are the tax benefits of EIS?
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    The tax benefits of EIS include 30% income tax relief on investments, exemption from capital gains tax on profits, and the ability to offset losses against other income. The availability of tax reliefs will depend on the investor’s individual circumstances, and may be subject to change in the future.

    How can I claim EIS tax relief?
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    To claim EIS tax relief, investors must complete a self-assessment tax return and submit the relevant EIS3 certificate provided by the company in which they invested.

    How can I invest in EIS?
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    Investing in EIS can be done by purchasing shares directly in qualifying small businesses or through EIS funds, which pool investments for a diversified approach. EIS investments involve high-growth, innovative companies, and carry the risk of capital loss. Investors must be willing to accept the higher risk associated with early-stage businesses.

    What businesses are eligible for EIS funding?
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    Eligible businesses for EIS are unquoted, early-stage UK companies, with fewer than 250 employees and assets under £15 million at the time of investment.