With the end of the tax year fast approaching, savvy investors still have time to take advantage of Enterprise Investment Scheme (EIS) opportunities to reduce their tax liabilities while supporting innovative UK businesses.
For those who want to make use of their EIS allowance this tax year the clock is ticking, with the latest deadlines a week before the tax year end.
Alex Davies, Founder and CEO of Wealth Club, said, “Investing in EIS qualifying single companies can be high risk, but with the potential for significant returns as well as generous tax reliefs. It is also a crucial source of funding for high-growth UK companies, with an opportunity for investors to share in their success.”
Using technology to fight food waste one yellow sticker at a time, Gander enables supermarkets to promote reduced-to-clear products online in real-time to thousands of local thrifty shoppers. Every item that gets sold instead of going to waste adds directly to a supermarket’s bottom line.
So far, Gander has saved over 40 million food items, reducing food waste by around 20% while converting it into cash. Apply by 31 March 2025.
From irresistibly soft A-grade Mongolian cashmere jumpers to crisp high-thread-count organic cotton bedding, Rise & Fall sells luxury and sustainable fashion and homewares at cut-prices compared to other luxury goods brands.
Dubbed “fashion’s best-kept secret” by The Times, sales have more than doubled every year since launch, and the company is now eyeing overseas expansion. Apply by 31 March 2025.
Leveraging AI to disrupt the traditional qualitative consumer research industry, Beings automates 80% of the most painstaking and costly part of a research project: transforming hundreds, if not thousands, of consumer quotes into actionable insights for businesses. Beings is significantly faster, lower cost, and more accurate.
One of its key clients, Google, has praised Beings for “helping redefine the future of research.” Apply by 29 March 2025.
About the Enterprise Investment Scheme (EIS)
By investing in EIS-qualifying businesses, investors can access a range of tax incentives, including:
- 30% Income Tax Relief – Investors can claim up to 30% of their investment amount as a deduction from their income tax liability for the year.
- Capital Gains Tax (CGT) Deferral – Gains from other investments can be reinvested into EIS companies to defer CGT liability.
- Tax-Free Growth – Any capital gains made on EIS shares held for at least three years are exempt from CGT.
- Loss Relief – If the investment doesn’t perform as expected, investors may offset losses against their income tax or capital gains tax.
- Inheritance Tax Relief – EIS shares held for at least two years qualify for Business Property Relief, making them exempt from Inheritance Tax. However, upcoming changes will reduce these benefits. In a few years, only the first £1 million of Business Property Relief assets will be entirely inheritance tax-free, while the remainder will be taxed at a 50% discount.
Investing before the tax year-end means investors can secure these tax reliefs for the current financial year, maximising their tax efficiency while diversifying their portfolios with high-potential although higher risk businesses.
