Understand how the Enterprise Investment Scheme (EIS) can help you invest in early-stage businesses, diversify your portfolio and potentially reduce your tax bill.
The Enterprise Investment Scheme (EIS) is one of several venture capital schemes the UK government has established to encourage investment into early-stage UK businesses. To promote investment in this crucial area of the economy, the government offers generous tax benefits to investors. There are several advantages to investing through the EIS and some associated risks to consider.
For an overview of EIS, including why the scheme exists, who it’s suitable for, information on tax reliefs and the potential benefits, risks and costs involved, watch our educational video with two of the leading providers of EIS investments.
Risk warning
This does not constitute investment, tax or legal advice. EIS investments are considered high risk investments by the UK's financial regulator, the Financial Conduct Authority. They are only suitable for UK resident taxpayers who can tolerate higher risk and have a suitable timeframe for investment. Tax reliefs are subject to a minimum investment period and cannot be guaranteed. They depend on the individual circumstances of each client. Tax rules are subject to change.
Past performance is not a guide to future performance, the value of investments and income arising can fluctuate significantly, future returns are not guaranteed, and you could lose all of the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.
This publication has been issued by Royal Bank of Canada on behalf of certain RBC ® companies that form part of the international network of RBC Wealth Management. You should carefully read any risk warnings or regulatory disclosures in this publication or in any other literature accompanying this publication or transmitted to you by Royal Bank of Canada, its affiliates or subsidiaries.
The information contained in this report has been compiled by Royal Bank of Canada and/or its affiliates from sources believed to be reliable, but no representation or warranty, express or implied is made to its accuracy, completeness or correctness. All opinions and estimates contained in this report are judgments as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. This report is not an offer to sell or a solicitation of an offer to buy any securities. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Every province in Canada, state in the U.S. and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, any securities discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.
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