- EIS
-
Personal equity investment in qualifying trading companies allows the investor income tax relief at 20 per cent of the amount invested and capital gains tax benefits on the eventual sale. The conditions for relief are complex and restrictive, including a requirement to hold shares for five years.
Easyform Glossary of Law Terms. — UK law terms.
- EIS
-
I
A business expansion scheme introduced to encourage equity investment in new and small companies. The EIS has been available for investments since 1994. Taxpayers can benefit from unlimited deferral relief from capital gains tax where gains (including gains on shares) are reinvested in newly issued eligible shares (section 150C and Schedule 5B, Taxation of Chargeable Gains Act 1992). The investment in eligible shares must occur within the period beginning one year before and ending three years after a gain is realised. The gain is then postponed and becomes chargeable only on the occurrence of one of several specified events, for example, on the disposal of the EIS shares or the shares ceasing to be eligible EIS shares. Taxpayers are also entitled to relief from income tax on investment in EIS shares. The income tax deduction is given at the rate of 20% on the amount invested, up to a maximum annual investment of £400,000, provided that the shares are held for at least 3 years. Broadly, a company's shares will be eligible for the EIS if it is an unquoted trading company with gross assets (including subsidiaries' gross assets) not exceeding £7 million, and its trade (or a substantial part of its trade) does not consist of one or more excluded activities. These include dealing in land, banking, financial services, leasing, and legal and accountancy services (section 297(2), Income and Corporation Taxes Act 1988 for periods before 2007-2008 and section 192, Income Tax Act 2007 thereafter).IIUSAA statement that the National Environmental Policy Act (NEPA) requires federal agencies to file before taking an action "significantly affecting the quality of the human environment." An EIS describes a proposed agency action's negative and positive effects on the environment and offers alternatives. An EIS's stated purpose is to help collect relevant private and public information in a single place to help decision makers remain fully informed. Several states require their agencies to file an EIS under state-specific "little NEPA" statutes.For more information, see Practice Note, Environmental Law Overview (www.practicallaw.com/2-500-4092).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
