Britain's tech companies are flocking to the Enterprise Investment Scheme (EIS). New research from Radius Equity shows a 27% increase in take-up, compared to a year ago. The findings of this survey contrast with recent comments from the CBI among others, that too few elegible firms are taking advantage of EIS, and the scheme should be promoted more widely.
EIS is a government scheme that stimulates investment in small, high-growth companies by offering tax breaks. Firms have to register for EIS and go through an approval process, but investors in approved offerings are entitled to 30% initial income tax relief, and also benefiting from profits free of capital gains tax.