The Enterprise Investment Scheme has been in existence for the past 20 years. In that time over 20,000 companies have participated and over £9.7 billion has been raised.
The EIS scheme is becoming increasingly popular, particularly in the last few years as more and more companies realise the benefits. The scheme has seen an 87% increase in the amount of investment raised in the year 2011-12 compared to 2010-11, it is also being used to raise large amounts of funds: 57% of funds raised in 2011-12 were investments above £1 million, and 40% consisted of investments between £1.75 and £2 million.
In 2011-12, 2,598 companies benefitted from the scheme, raising a total of £1,017 million in investment. 1,498 of those companies were raising funds for the first time. The number of investors claiming income tax relief on self-assessment forms under EIS also increased in 2011-12 by 68% in comparison with 2010-11.
Recent changes in income tax relief have made the EIS scheme even more attractive, adding to the increased uptake by companies and the increase in investment size.
(All figures are taken from the EIS statistics published by HM Revenue & Customs on 13 December 2013.)