ENTERPRISE INVESTMENT SCHEME

Enterprise Investment Scheme: translation

A tax subsidy to encourage investment in small risky companies. Where a company qualifies for the scheme, any investment in equity shares in the company qualifies for income tax relief at a rate of 20%, up to a maximum investment of £150,000 in the fiscal year in question. This means that if an investor invests £100,000 in EIS companies, he can claim an income tax rebate for the year of £20,000. In addition to this, if the investor holds the shares for five years, any capital gain which he makes on disposing of the shares is capital gains tax free. Any capital loss suffered on the shares is eligible as a deduction from other taxable capital gains. Although the tax reliefs are generous, there are a number of restrictions to prevent the scheme being used merely as a means of artificial tax avoidance.Dresdner Kleinwort Wasserstein financial glossary

Enterprise Investment Scheme ˌEnterprise Inˈvestment ˌScheme abbreviation EIS noun COMMERCE

a British government arrangement to encourage investors to put money into new businesses:

enterprise investment scheme UK US noun [S] (ABBREVIATION EIS) FINANCE, GOVERNMENT

► a British government project designed to encourage investment in new companies

сокр. EIS фин., брит. "Программа стимулирования инвестиций"* (система поощрения инвестиций в небольшие, рисковые предприятия, чьи акции не котируются на фондовых биржах; введена в 1994 г. вместо "Программа расширения бизнеса"; предоставляет ряд налоговых льгот, напр., освобождение от налогов на прирост капитала, при условии, что инвестиции привлекаются путем размещения акций среди индивидуальных инвесторов и что компания-эмитент использует все привлеченные средства на расширение деятельности в определенных законодательством отраслях)