Three EIS single companies for the end of the tax year
Don't invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
- You could lose all the money you invest
- If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
- You are unlikely to be protected if something goes wrong
- Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
- You won’t get your money back quickly
- Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
- The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
- If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
- Don’t put all your eggs in one basket
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
- The value of your investment can be reduced
- The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
- These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here.
With taxes sharply up and tax-free allowances at historic lows, taking advantage of all available tax breaks is arguably more important than ever.
But time is running out.
One option for experienced investors to consider is to invest in private single companies that qualify for EIS income tax relief of up to 30%.
We have three offers that plan to allot shares before 5 April 2025 – not guaranteed. This means you should be able to apply the income tax relief to the current tax year (2024/25) or get back tax you've already paid for 2023/24, using 'carry back' (see below).
Tax rules can change and benefits depend on circumstances. These are single company private offers without diversification – capital is at risk.
Important: The information on this website is for experienced investors. It is not a personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value: you could lose all the money you invest
Deadline: Monday, 31 Mar
Gander EIS – platform helping supermarkets double sales of reduced-to-clear food and reduce food waste
Gander’s software helps retailers sell more of their Reduced-to-Clear (RTC) stock rather than becoming waste – boosting margins in the process. Currently in trials with major retailers including Iceland, Morrisons and £5.1 billion-turnover forecourt retailer MFG, the platform has so far helped retailers achieve an average sell-through rate of 87% for RTC items.
- Target return based on Company’s forecasts: 10x, not guaranteed
- Tax relief available in: 2024/25 tax year (carry back to 2023/24)
- Minimum investment: £19,680
Deadline: Monday, 31 Mar
Soanua (Rise & Fall) EIS – retailer of affordable and sustainable luxury goods, doubling turnover every year since launch
Online luxury homeware and apparel growing sales from £1.3 million in 2022 to £3.3 million in 2023 to £7.4 million in 2024. Co-investment with institutional investors Guinness Ventures and Venrex (early backer of Revolut, Charlotte Tilbury, Just Eat, Mumsnet, Notonthehighstreet.com, and ME+EM).
- Target return based on Company’s forecasts: 14x, not guaranteed
- Tax relief available in: 2024/25 tax year (carry back to 2023/24)
- Minimum investment: £20,800
Deadline: Monday, 31 Mar
WatchMyCompetitor EIS – AI-powered competitive intelligence platform generating £3.0 million ARR
Competitive intelligence platform that collects and curates industry and competitor-specific data and delivers tailored insights to users. The platform now tracks 100 million data points monthly and serves more than 100 clients across the world, including the likes of Volkswagen, IKEA, Uber and Santander.
- Target return based on Company’s forecasts: 7x, not guaranteed
- Tax relief available in: 2024/25 tax year (carry back to 2023/24)
- Minimum investment: £20,520
What tax relief could I receive?
The EIS (Enterprise Investment Scheme) incentivises investment in small and usually privately owned companies.
When you invest in a company or a portfolio of companies that qualify for EIS, you could receive:
- Up to 30% income tax relief – up to £3,000 saving on a £10,000 investment
- Carry back – potential to use the income tax relief against a previous year's tax bill
- Very generous allowance – up to £1 million per tax year (or £2 million if at least £1 million is in knowledge-intensive companies)
- Tax-free growth
- Capital gains deferral – defer capital gains from other investments, potentially indefinitely
- Loss relief – offset any future losses against your income
- Inheritance tax relief – potentially pass on your investment free of IHT
Tax rules can change and benefits depend on circumstances.
How to get back tax you’ve already paid with EIS carry back
EIS investments offer a “carry back” facility. You can elect for all or part of your EIS shares acquired in one tax year to be treated as though they had been acquired the previous tax year.
So, for instance, if you invest in an EIS offer that plans to deploy your funds before 5 April 2025, you can use the income tax relief (up to 30% with EIS):
- to save on your income tax bill for 2024/25
- to get back tax you’ve already paid for 2023/24
You can only do this if you have sufficient EIS allowance in the tax year to which you’re carrying back.
There’s still time to apply EIS relief to your 2023/24 income tax bill – but please pay attention to the deadlines.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
Alex Davies
Chief Executive
Alex was a board director at Hargreaves Lansdown, where he worked for 15 years. He was responsible for building Hargreaves Lansdown into the biggest direct-to-consumer SIPP provider in the UK with more than 150,000 clients and over £12 billion under management. He is a keen investor with a portfolio of shares, funds, student property, EIS and VCT investments.