EIS stands for Enterprise Investment Relief
EIS relief gives you a refund of 30% of your investments in EIS Qualifying companies.
The relief is against income tax.
There are still 5 days to go to invest in EIS Qualifying companies and carry back to the last tax year for relief against the tax you have paid in 14/15
This means you get one extra year for future investments in EIS Qualifying companies.
The Company has to apply to HMRC on form EIS 1.
HMRC will then check if
a) The Company qualifies for EIS
b) Whether the shares issued qualify.
If the HMRC agrees they do Qualify, the HMRC will issue EIS 2 to the company.
The EIS 2 authority will give the company to issue EIS 3 to the investors.
The investors then can use EIS 3 to claim their Tax Relief.
The good news is that, it is the date of shares subscribtion that is the important date. The EIS3 form can follow at a later date, if the Share issue qualify
If you need advise on EIS or other Tax matters, we are happy to help. Advise must be taken, before investing.