Search Mobile

collapse

already registered?

Please sign in with your existing account details.

Email address

Password

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

collapseSign

Home

Insights

Resources

Blogs

Enterprise Investment Scheme (EIS): increases to qualifying thresholds

enterprise investment Scheme (EIS): increases to qualifying thresholds

3 August 2012

Some of the changes to the EIS qualifying conditions pre-announced in the Budget have now been confirmed as taking effect for EIS investments from 6 April 2012. There are welcome increases to the following limits applying to the target investment company:

the maximum permitted number of employees has increased from 50 to 250;
the maximum gross assets before/after the investment has increased from £7M/£8M to £15M/£16M respectively;
the overall annual limit on investments in a company under the EIS, Venture Capital Trust and Corporate Venturing Schemes has increased from £2m to £5M.

Combined with the current income tax relief rate of 30% and a capital gains tax exemption for qualifying EIS shares, plus the new Seed Enterprise Investment Scheme (SEIS), the government is clearly trying to encourage more investment from business angels and other individuals into the UK SME and startup sector.

related opinions

Directors who fail to prepare, should prepare to fail

Two recent judgments demonstrate the risk that directors (of insolvent companies) face of being personally liable if appropriate records and procedures are not followed and if it cannot be shown that certain payments were in the interests of the company.

View blog