Enterprise Investment Scheme
Venture capital scheme helping eligible businesses raise capital by offering tax reliefs to investors buying new shares.
Who it is for
Your company can use the scheme if it:
- is permanently established in the UK
- is not (and does not plan to be) trading on a recognised stock exchange at the time of share issue
- does not control another company other than qualifying subsidiaries
- is not controlled (or has the majority of its shares owned) by another company
- does not expect to close after completing a project or series of projects
In addition, your company and any subsidiaries must:
- have gross assets under £15 million before, and under £16 million immediately after, issuing shares
- have fewer than 250 full-time equivalent employees when the shares are issued
Your company must carry out a qualifying trade. If you’re part of a group, the majority of the group’s activities must be qualifying trades.
Support you can get
You can raise up to £5 million per year, or up to £12 million total over your company’s lifetime (or more if you’re a knowledge-intensive company). These limits apply to amounts you get from other venture capital schemes, where the initial investment is within seven years of your company’s first commercial sale.
Money raised by a new share issue must be spent within two years of investment, and for qualifying business activity, which is either:
- a qualifying trade
- preparing to carry out a qualifying trade (must start within two years of investment)
- research and development expected to lead to a qualifying trade (eg science or tech advancement)
How to apply
To allow your investors to claim Enterprise Investment Scheme tax reliefs, you must first submit a compliance statement to HM Revenue & Customs for the shares issued. You can submit a compliance statement if you are the company secretary, a director or an agent.
Support organisers
- HM Revenue & Customs