As readers will no doubt be aware the Budget announced changes to the Capital Gains rules. Assuming that the legislation is enacted as anticipated, these changes may also affect deferral under EIS of any gains accrued after that date as it will no longer be possible both to defer such gains under the EIS rules, and for them to qualify for Entrepreneur's Relief.

The Enterprise Investment Scheme (EIS) is designed to help smaller higher–risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.

Detailed guidance relevant to shares issued post 6 April 2009 is available at http://www.hmrc.gov.uk/eis/index.htm