The Enterprise Investment Scheme (EIS) is a government scheme that provides a range of tax reliefs. Depending on tax status, investors may be able to qualify for 20% income tax relief on up to £500,00 in any one tax year, tax free capital gains if held for three years, deferral of capital gains generated up to three years before or one year after the EIS investment and 100% inheritance tax relief if held for two years.
UK-based venture investor Longbow Capital LLP, has launched a new EIS Fund, a tax-efficient investment vehicle aimed to invest in a portfolio of emerging healthcare, life science and wellbeing companies.
The fund, which is targeting to raise £10m by 1 April 2010, will invest in a portfolio of 6/8 companies within a 12 month period, in accordance with HMRC rules.
Investment activity will be focused on technologies that are close to market or have already been launched as this reduces risk while maintaining the opportunity for significant returns.
The fund will target companies valued below £10m.