For investors

Puma Investments

What is the Enterprise

Investment Scheme?

A UK Government initiative that offers tax reliefs to investors who buy shares in early-stage, high-growth companies.

The role of EIS in tax‑efficient planning

The Enterprise Investment Scheme (EIS) is a Government initiative that helps early‑stage UK businesses raise the growth capital they need to develop and scale. It offers a tax‑efficient investment route for clients who understand higher‑risk opportunities and want to support the next generation of UK companies.

Investments into EIS‑qualifying shares can offer a range of valuable tax benefits, including income tax relief, Capital Gains Tax advantages and potential inheritance tax (IHT) relief through Business Relief (BR).

Since 1994 the scheme has supported nearly 59,000 companies and has directed close to £34 billion into SME growth,1 helping drive innovation and job creation across the UK.

Three reasons to invest in EIS solutions

Reason to recommend 1

Support growth

and innovation

 

EIS allows you to invest in early‑stage UK businesses that are driving innovation and creating jobs. It enables you to support the growth of new companies at a pivotal stage
Reason to recommend 2

Tax-

efficiency

 

EIS offers tax incentives like income tax relief, Capital Gains Tax deferral and loss relief. Qualifying shares can also offer up to 100% inheritance tax relief through Business Relief after the required holding period
Reason to recommend 3

Potential high

returns

 

By backing early‑stage companies with strong growth prospects, EIS offers the potential for meaningful long‑term returns. It can suit you if you're looking for growth alongside valuable tax advantages

EIS investments are inherently high risk, as they target early-stage companies that may fail. Shares are illiquid and must be held for at least three years to retain tax reliefs, with no guaranteed exit strategy. Tax benefits can be lost if the company breaches EIS rules, and the complexity of the scheme requires careful compliance. Additionally, investors must be prepared for a long-term commitment and accept the possibility of capital loss

What are the tax benefits?

Tax reliefs are not guaranteed, depend on your client's personal circumstances, a three-year minimum holding period and may be subject to change.

Income tax

relief

 

Claim up to 30% income tax relief on the amount invested, up to £1 million a year or £2 million for Knowledge Intensive Companies

Capital Gains Tax

exemption

 

No Capital Gains Tax due on profits from any EIS shares that have been held for at least three years

Capital Gains Tax

deferral

 

Defer Capital Gains Tax by reinvesting gains into EIS‑qualifying shares

Loss

relief

 

Offset any losses against income tax or Capital Gains Tax, helping reduce the overall downside risk of investing in early‑stage companies

Inheritance tax

exemption

 

EIS shares can qualify for 100% inheritance tax relief through business relief once held for two years and still held at death

Learn more about Puma's EIS solutions

Closed for investment

Puma

Enterprise Investment Scheme

 

Supports the growth of UK SMEs, while offering EIS tax reliefs on 100% of funds invested

Find out more

Closed for investment

Puma Alpha

Enterprise Investment Scheme

 

Aims to deliver strong returns by investing in scale-up companies, while providing full EIS tax reliefs

Find out more

There are three ways to invest

Both of our EIS solutions are currently closed for investment

Direct investment

 

This involves selecting an individual qualifying company and investing directly into it. This route requires detailed due diligence and a strong understanding of the company, its market and the risks involved

EIS fund or managed portfolio

 

These services pool investor capital into a diversified portfolio of EIS‑eligible companies. Typically managed by an experienced team, they conduct due diligence and oversee investments

Syndicate or angel network

 

These groups consist of individual investors who combine their capital to invest in early‑stage businesses. They often bring industry experience and can add value through mentoring and strategic support

FAQs

For information purposes only and should not be read as advice. Professional tax advice should be sought that can take account of your individual circumstances.

Find out more

Please contact your Financial Adviser to discuss our investment solutions in more detail.

Alternatively, our team of over 20 Client Relations and Operations specialists can provide practical guidance and seamless service at every stage of your investment journey.

Contact our team today

Sources

1 https://eisa.org.uk/about-eis/facts-and-figures/

 

Risk factors

You can only invest in EIS through a Financial Adviser who has assessed that an investment is suitable for you. An investment in EIS carries risk and you should read in full the EIS Investment Overview. Below are the key risks:

 

General: Past performance is no indication of future results and share prices and their values can go down as well as up. The forecasts in this document are not a reliable guide to future performance.

 

Liquidity: It is unlikely there will be a liquid market in the shares of the EIS-qualifying companies and it may prove difficult for investors to realise their investment immediately or in full.

 

Capital at risk: An investment can be viewed as high risk. Investors' capital may be at risk and investors may get back less than their original investment.

 

Tax reliefs: Tax reliefs depend on individuals' personal circumstances, minimum holding period and may be subject to change.

 

Private companies: EIS solutions may invest in unlisted shares. Such investments can be more risky than investments in listed shares. Unlisted shares may be subject to transfer restrictions and may be difficult to sell. It may be difficult to obtain information as to how much an investment is worth or how risky it is at any given time.