Increase in EIS investment limits

In March 2012, we reported on the proposed amendments to the law on the Enterprise Investment Scheme. The planned rise in the investment limit, which was subject to review by the European Commission, has now been approved.  While the increase is not as much as the proposed £10 million, the current limit of £2 million has been more than doubled to £5 million.

Other changes include:

• an increase of the individual investment limit from £500,000 to £1 million;
• an increase of the employee limit at the time of investment from fewer than 50 employees to fewer than 250 employees;
• an increase of the gross assets limit:

• immediately before investment, from no more than £7 million to no more than £15 million; and
• immediately after investment, from no more than £8 million to no more than £16 million.

These changes will affect investments made on or after 6 April 2012, if Royal Assent is given to the relevant legislation.

If you would like further information on EIS generally, please contact Giao Pacey.  For information on EIS in the media sector, please contact Jonathan Blair.

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