Article by Simon Groom, Head of Tax Training, Tolley Tax Training. This article appeared in the Education Supplement of Tax Adviser August 2006. The Enterprise Investment Scheme (EIS) has been with us since the mid-1990s, replacing the old Business Expansion Scheme. The aim of the scheme is to encourage Joe Public to invest in small, private companies so that these may thereafter prosper, stimulate the economu, employ more people, pay more tax and generally put a smile on the Chancellor's face.
To encourage Joe to invest in such schemes, the government dangles the age-old carrot called 'tax relief'. Joe 'shows a bit of enterprise', invests, and as a consequence either a) pays les tax or b) payes tax at a later date, or c) both.
August Education Supplement 2006 by
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