You probably have an idea of what a shareholder agreement is. But why should you have a shareholder agreement before issuing even a single share in a small business? Why pay for a professional to prepare a shareholder agreement when you are family or very close friends.
Enterprise Investment Schemes – a basic guide is an article to explain the variety of generous income and capital gains tax reliefs to investors on the issue of new shares in small rapid growth unquoted stocks.
This article is – Enterprise Investment Schemes – A Basic Guide – therefore it is not a detailed analyses of the various schemes and tax breaks, for that you need to get professional advice. It seeks to give a basic understanding of the EIS and only covers shares issued on or after 06 April 2009 up to 2014. Additionally, you should be aware that the rules for EIS are subject to change so professional advice is required for the latest applicable reliefs and legislation.