Qualifying investors can credit the amount of funds subscribed for eligible shares against their total liability to Income Tax for the tax year that shares are issued and also the preceding year.
Relief is available against a United Kingdom Income Tax liability, irrespective of whether or not the investor is resident in the UK.
Please note, the amount of relief given cannot exceed an investor’s tax liability. A qualifying individual can claim to ‘carry back’ up to £500,000 of their EIS investment to the previous tax year, thereby enabling Income Tax already paid to be reclaimed.
‘Carry Back’ allows that, if no investment had been made in the previous tax year, up to £1,000,000 can be invested in the current tax year.