People who are interested in making investments keep on looking around for various lucrative options. They prefer such investment options that may allow them to gain something by way of profit returns. The business owners that have sufficient extra funds prefer to invest the same so that they may look forward to great capital growth soon. In this respect, the EIS scheme always appeals to the investors. EIS refers to Enterprise Investment Scheme wherein the investors make investments in smaller businesses or start-ups. Generally, investments are made available to such businesses that have growth potential. It is beneficial for the investors as well as the investees in several ways. Let us now have a look at some of the major advantages of the EIS scheme.
Availability Of The Funds For The Investees
One of the most important benefits of eis shares is the availability of funds for the investees. The smaller companies or the business start-ups readily get the funds that they need for business operations from the bigger business owners. Hence it is beneficial for both as the investors get lucrative investment opportunities while the investees get the funds that they need.
Tax Reliefs For The Investors
By way of the EIS scheme, the investors get great relief on taxes. They get relief on income tax and other types of taxes. It means they are saved from paying huge taxes on their income and other assets as they have invested in the business start-ups or such entities that need financial aid.
Direct capital gains
Facilitated by EIS, the investors get benefited in terms of direct capital gains. It means they also gain something when the companies that they have invested in earn some profit returns. Due to the investments made by the leading businesses into the smaller firms their profit returns increase which in turn is beneficial for the investors as well.
Shares in the companies being invested in
The investors also get shares in the companies that they have invested in. They become stakeholders in the given company and thus chances of growth of their shares are always there.
Relief from losses
Yet another great benefit of EIS shares is that it offers relief from any losses to the investors. Even if the company that you have invested in suffers some unexpected losses you may still get compensated by way of various tax reliefs that you get due to such investments.
These are all some of the most important benefits that can be gained through EIS. By making investments under this scheme, the investors may look forward to the growth of their investments while getting benefited in terms of tax reliefs and additional reliefs.