Short answer
You can invest in EIS directly in a single company, through an EIS fund or portfolio service, or via a crowdfunding platform or adviser. Before investing, check the company's EIS position, read the investment documents, understand the risks and consider professional advice.
Three ways to invest in EIS
| Route | How it works | Points to consider |
|---|---|---|
| Direct investment | You subscribe for shares in one company | Concentrated risk; you carry out or rely on your own due diligence |
| EIS fund or portfolio service | A manager invests your money across several qualifying companies | Diversification; management and other fees; relief arrives per company or at fund closing |
| Platforms and advisers | Online platforms or advisers arrange the investment | Check whether the firm is FCA authorised and what protections apply |
Compare structures in EIS schemes explained.
Step 1 — Decide whether EIS is appropriate
Consider how much of your wealth you could afford to lose entirely, how long you can lock money away, and whether you have enough UK income tax liability to use the relief. EIS is generally suitable only as a small part of a diversified portfolio.
Step 2 — Check the investment
- Check the company on Companies House: incorporation date, directors, filed accounts and charges.
- Ask for evidence of the EIS position, such as HMRC advance assurance, and understand its limits.
- Read the information memorandum or pitch, the articles of association and the subscription agreement.
- Understand the share class, valuation, use of funds, dilution and exit assumptions.
- Find out who is promoting the investment and whether they are FCA authorised.
Step 3 — Complete investor categorisation
Firms promoting high-risk investments will usually ask you to confirm whether you are a high-net-worth, sophisticated or professional investor and to complete an appropriateness assessment. These are regulatory steps; they do not determine your entitlement to tax relief.
Step 4 — Subscribe and pay
Sign the subscription documents and pay the subscription in cash. Shares must be fully paid at issue. Keep copies of all documents.
Step 5 — Receive your EIS3 and claim relief
After the company has traded for four months and HMRC has approved its compliance statement, you will receive an EIS3. Use it to claim relief on your Self Assessment return. Claims must be made within five years of 31 January following the tax year in which the shares were issued.
Step 6 — Keep records and monitor
Keep your EIS3 and records of any gains deferred. Tell HMRC within 60 days if anything happens that means relief should be withdrawn.
Read the full investment risk warning.
Frequently asked questions
Is there a minimum investment for EIS?+
HMRC sets no minimum. Companies and funds set their own minimum subscriptions.
Do I need a financial adviser to invest in EIS?+
Not necessarily, but because EIS investments are high risk and tax relief depends on your circumstances, independent regulated advice is strongly recommended.
Sources
- GOV.UK — Venture capital schemes: tax relief for investors
- GOV.UK — Enterprise Investment Scheme: income tax relief (HS341)
- FCA — High-risk investments and financial promotions
Tax rules can change. The information on this website is general information only and is not personal financial, investment, tax or legal advice. It does not take account of your individual circumstances. See our editorial policy.
Interested in EIS investing?
If you are a high-net-worth, sophisticated or professional investor, you can request investor information from us.
Capital at risk. EIS investments are high risk and illiquid. Tax reliefs depend on individual circumstances and qualifying conditions.