Frampton & Co Chartered Accountants
The Enterprise Investment Scheme [EIS]

Frampton East Sussex Chartered Accountants EIS

The UK Enterprise Investment Scheme (EIS) is a tax relief scheme that aims to encourage investments in small and medium-sized enterprises (SMEs) that carry out a qualifying trade in the UK. The scheme offers various benefits to both investors and companies that participate in it.

For investors, the scheme provides income tax relief of 30% on investments up to £1 million per year in eligible companies. This means that investors can reduce their income tax bill by up to £300,000 for each tax year that they invest under the EIS. Investors can also defer capital gains tax on gains that are reinvested in EIS shares, and pay no capital gains tax on any gains from the disposal of EIS shares after holding them for at least three years. Additionally, investors can claim loss relief if they sell their EIS shares at a loss, and benefit from inheritance tax relief if they hold their EIS shares until death.

For companies, the scheme helps them raise capital from private investors who are willing to take higher risks in exchange for tax incentives. The scheme allows companies to raise up to £5 million each year and a maximum of £12 million in their lifetime through the issue of new shares. The scheme also helps companies access other sources of funding, such as venture capital and bank loans, by enhancing their credibility and attractiveness. To be eligible for the scheme, companies must meet certain criteria, such as having a permanent establishment in the UK, not being listed on a recognised stock exchange, not having gross assets exceeding £15 million before the share issue, and having less than 250 employees.

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What are the benefits of Frampton & Co managing my EIS portfolio?


Investing can be a rewarding but challenging activity that requires knowledge, skills and experience. Many people feel more confident when they have the assistance of an accountant when investing money. At Frampton & Co we help our clients understand the financial aspects of investing, such as the risks, returns, costs and tax implications of different investment options. We're experts in analysing your financial situation, and assessing your goals and risk tolerance; we work towards creating a fully bespoke personalised investment plan that suits ,your specific needs and preferences.

By having the assistance of Frampton & Co when investing, you can benefit from our combined expertise, experience and professionalism, saving time, money and effort that you would otherwise spend on learning, researching and managing your investments. With Frampton & Co, you can be confident that you're making smart and sound investment choices that will help you achieve your financial goals.

The EIS is a complex scheme that requires careful planning and compliance with various rules and procedures. Frampton & Co can help you navigate the scheme and make the most of its advantages. However, you should also be aware of the risks involved in investing in SMEs, such as illiquidity, volatility, failure and dilution. You should only invest in the EIS if you are comfortable with these risks.

Why Us?

  • We identify and evaluate potential investment opportunities in eligible companies that match your risk appetite and financial goals.
  • We calculate and claim the income tax relief and other tax benefits that you are entitled to under the scheme, and advise you on how to maximise your tax savings.
  • We keep track of your EIS portfolio and monitor the performance and progress of the companies you have invested in.
  • We ensure you comply with the EIS rules and deadlines, such as holding the shares for at least three years, reporting any changes in your circumstances to HMRC, and disposing of the shares in a tax-efficient manner.

Ready to take the next step?


If you're looking to take advantage of a UK Investment Initiative, contact us today on
01424 211 141
or make an enquiry via our online contact form: