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What can EIS money be used for?

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What can EIS money be used for?

EIS for companies

The money raised by the new share issue must be used for a qualifying business activity

Qualifying business activities include:

  • carrying out a qualifying trade
  • preparing to carry out a qualifying trade (which must start within 2 years of the investment)
  • research and development that's expected to lead to a qualifying trade

The money raised by the new share issue must:

  • be spent within 2 years of the investment, or if later, the date you started trading
  • be used to grow or develop your business
  • not be used to buy all or part of another business

More information:

How can we raise money via EIS?

Step by Step Guide

What trades are excluded?

Does my company qualify for EIS?

What is EIS?

How much can we raise?

Do we have to be a UK company?

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PLEASE NOTE:

To qualify for EIS relief, investors must be UK resident for tax purposes (or have UK tax liabilities) and subscribe cash for new shares in qualifying companies. Tax treatment is dependent on individual circumstances and may be subject to change. This content is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the information it contains. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this content. It is also important to realise that investing in small companies always carries risks, including the loss of capital, illiquidity (the inability to sell assets quickly or without substantial loss in value), lack of dividends and share dilution. Investments should still be made as part of a diversified portfolio.