Tax SolutionsThe Enterprise Investment Scheme (EIS) is a government initiative designed to help small UK based entrepreneurial companies gain funding by offering a series of attractive tax relief and deferral options for private investors.

EIS offers significant opportunities for providing tax solutions for income tax, capital gains tax and inheritance tax planning.

The EIS Tax Reliefs available to investors (subject to terms and conditions):

Income Tax Relief
20% income tax relief – available on investment up to a maximum of £500,000.

Capital Gaines Tax Relief
CGT deferral - no limit on the amount of EIS investment used to defer a gain.

Capital Gains Tax Deferral
CGT previous gains - gains at 40% can be reduced to 18% once held for the EIS qualifying period
CGT previous gains - gains in the last 3 years/future 12 months can be claimed back and deferred whilst invested in an EIS investment.

IHT Relief
IHT/BPR – 100% relief once held for 2 years - no limit on the amount that can be subscribed for IHT/BPR relief.

The healthcare, life science and wellbeing sectors traditionally provide measures of protection in economic downturns. Because the Longbow EIS Funds offer the twin benefits of investment in this sector and significant EIS tax breaks, advisers may be secure in the knowledge that our Funds offer their clients an effective balance between capital protection and growth.