Tax & Accounting News
EU approved EIS changes
07/12/2011
The EU has approved major changes to the Enterprise Investment Schemes (EIS) announced by the Chancellor in his last budget.
From 6 April 2011, income tax relief was increased to 30% of the amount invested; it was previously 20%.
It was also announced that from April 2012, the maximum EIS investment per year an individual can make increases to £1 million from the current upper ceiling of £500,000.
Larger companies will also be able to qualify for EIS status as investing in these will be less riskier than investing in smaller enterprises.
Because the increased tax incentives count as state aid under EU competition rules, the Government had to obtain clearance for these measures.
Investors holding off making an EIS investment should hold off no longer, as Brussels has approved the measures.
