The Enterprise Investment Scheme (EIS) is an initiative by the UK government offering a range of attractive tax incentives to encourage investment into growth companies by private investors.
EIS has helped many small companies develop new technology, new drugs, engineering innovations, biotech, fintech and data processing solutions. The latest figures show over 24,500 UK businesses have raised more than £14 billion of development capital through the scheme. This has proven vital for the small and medium sized enterprises (SMEs) and a driving force in nurturing future UK growth.
In the November 2017 budget, the government doubled the investment limits for “knowledge intensive” companies.
Here we look at who ultimately benefits from such generous tax breaks?