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EIS (UK)

Also called: enterprise investment scheme, EIS

In one line

A UK scheme giving investors generous tax reliefs for backing qualifying smaller companies — relevant to who may buy private shares.

In plain English

EIS rewards UK investors with income-tax relief and CGT breaks for investing in eligible startups. It mainly shapes the investor side, influencing who might buy into a company.

If you were explaining it to a 5-year-old

A British rule that gives grown-ups a tax reward for putting coins into small clubs — encouraging them to invest.

Why it matters when you sell

EIS affects the pool and behaviour of UK investors who could be buyers of private shares, and the company's funding dynamics.

Related terms

SEIS (UK)Accredited investorPreferred stock

Put it to use

Who buys private shares?

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Sources

Primary references for this term: UK Government / HMRC (gov.uk). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.