What is an EIS Investment?
The Enterprise Investment Scheme (EIS) was introduced in 1994 with the aim to help smaller, higher-risk trading companies to raise equity finance by offering a range of tax reliefs to investors purchasing new shares in those companies.
The scheme allows investors in qualifying companies to claim income tax and capital gains tax relief if the investment is approved under the EIS rules by HM Revenue & Customs (HMRC).
Income tax relief (of 30% on investments of up to £1 million per tax year) and capital gains deferral relief is available on investment. Exemption from capital gains tax and loss relief is available on a disposal of EIS shares.
The EIS can be a useful tool in an individual’s tax planning and can assist qualifying companies to attract the equity investment they need.
However, there are a number of conditions that must be satisfied in order for the investor to qualify for tax relief under the EIS, both on the part of the investor himself and the company in which he is investing. Please read our EIS Investment Guide for details.
Legal Clarity’s EIS Investment package is suitable for companies wishing to issue shares to an investor that qualify for tax relief under the Enterprise Investment Scheme (EIS).
We typically work in conjunction with the company’s accountants to procure that the legal aspects of the investment tie in with the relevant tax advice, this is crucial to securing the desired tax result (being qualification for EIS Relief).
We draft EIS Investment Agreements to meet your particular requirements.
What does our package include?
- Detailed Consultations – with one of our solicitors to provide advice and to take detailed instructions.
- EIS Investment and Shareholders Agreement – drafted in accordance with your instructions.
- Articles of Association – re-drafting the company’s Articles of Association, to facilitate the EIS Investment and Shareholders Agreement.
- Ancillary Documents – including Companies House forms and share certificates.
- Forms EIS 1 and EIS 3 – to apply to HMRC for formal approval of the tax relief on the EIS shares.
- Guidance – written in plain English.
EIS INVESTMENT PACKAGE
From £1,850 + VAT
Please contact us for a fixed quotation.