1. Tax Rebate/Relief against income tax

An individual who is a taxpayer will receive a tax-rebate of up to 30% on their investment. If you invest £10,000 (as in the illustrated example) you could either receive a cheque for £3,000 or an adjustment to the tax you pay but, since this is a rebate, it is restricted to the amount of tax that has been paid/is due in that same year. In principle, one can invest up to £1,000,000 per annum and the software will provide tax credits of up to £300,000 which will be set against an individual's tax liability for that same year. The screenshot, below, is taken from the Year View>Taxes tab.

Ordinarily, shares must be held for 3 years in order to keep the rebate. Note, however, that the software will not reclaim the rebate if the EIS is liquidated prematurely.

2. CGT Disposal Relief

When shares within an EIS are liquidated, any gain is exempt from Capital Gains Tax. 

3. CGT Deferral Relief

The payment of tax on a capital gain can be deferred where the gain is invested in shares of an EIS qualifying company. The gain can arise from the disposal of any kind of asset. Where investments are eligible for deferral relief, however, this is not presently captured by the software.

4. IHT Relief

So long as the EIS investment has been held for more than 2 years at time of death. the software applies Business Property Relief equivalent to the value of the account.