Enterprise Investment Scheme (EIS) - rules

The basics are :

  • An unquoted company is permitted to raise up to £ 1 million a year through the scheme.
  • Each individual investor can invest up to a limit of £200,000 a year.
  • The shares must be held for a minimum of five years.
  • You can't invest in a company in which you already own more than 30% of the shares.
  • Some companies are excluded from the scheme, such as those providing finance, leasing, legal and accountancy services. Companies which have more than half of their assets in land or buildings are also ruled out.