Enterprise Investment Scheme (EIS) explained
Since 1994 investors have been benefiting from tax efficient investments through
The Enterprise Investment Scheme.
ABOUT THE SCHEME
THE ENTERPRISE INVESTMENT SCHEME (EIS)
The Enterprise Investment Scheme (EIS) is a government sponsored investment scheme, offering a range of tax relief benefits to investors who invest in smaller high-risk companies which are not listed on the stock exchange.
It’s been designed to encourage investment into younger, companies.
KEY FEATURES OF EIS
Tax relief provides a key benefit for qualifying investors of EIS, below are some of the key features.
To date, our distribution partner have not lost money on any film, however in the unlikely event of this happening the following scenarios would be relevant :
COMPANY FAILS TO MAKE RETURN AND BREAKS EVEN
TOTAL GAIN: £3,000
You sell your shares for £10,000 after 3+ years
COMPANY FAILS INSPITE OF RISK MITIGATION
TOTAL LOSS: £3,850*
The company in which you invested goes bust. Your shares are worth £0, but you receive loss relief
*You receive loss relief from the government equal to your at-risk capital (in this case the £10,000 invested – £3,000 received in Income Tax relief), multiplied by the percentage tax bracket you belong to. At a tax bracket of 45%, the loss relief would be £7,000 x 45% = £3,150. So, for £10,000 invested, your real loss is £7,000 – £3,150 = £3,850