The EIS (Enterprise Investment Scheme) is designed to encourage investment into UK businesses and it is one of the only Government-backed tax incentive schemes open to SMEs and new start-up companies. The scheme offers tax breaks to investors who subscribe for new shares in a qualifying company.
However, according to HMRC data, businesses outside of London and the South East are not using the EIS to the same extent. In fact, data shows that in 2015/16 only £610 million out of £1.9 billion of EIS Investment was made in businesses beyond London and the South-East.
The lack of uptake outside of London would seem to indicate a widespread unfamiliarity with the EIS.
We have considerable experience in this area, and if you would like further information and guidance, please contact either David Nash or David Buck on 01788 539000.