(Enterprise Investment Scheme)
The enterprise investment scheme is a series of tax reliefs that have been designed in the UK to try and encourage wealthy business people to invest in small and growing companies. As a result in will greatly increase the chances of gaining potential investment and the money needed, as it can also reward current investors. The main reason that this scheme has been introduced is that there generally tends to be high risk when investing in a company that is not on the stock exchange, so this is a way of alleviating some of that risk, as they are offered both income and capital gains tax benefits. The maximum a company can get from a single investor, in a single tax year, and the maximum a company can receive overall in a single year is £2 million through the scheme.
There has also been a another similar, more recent scheme introduced on 6th April 2012 called the Seed Enterprise Investment, and is very similar to the EIS. However, in this case with the SEIS, it purely focuses on small and new companies, and again it offers income tax relief and capital gains tax exemption.

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