Octopus EIS

The Octopus EIS

The Octopus Enterprise Investment Scheme (EIS) is a simple way to reduce your tax burden. It offers three clear advantages: tax benefits, lower risk investments, and liquidity.

Lower Risk and Improved Liquidity

Octopus EIS underlying investments are lower risk than other typical EIS products. Octopus will allow all of its management fees to roll up interest free and will only take them at the end of three years, providing investors still receive back the amount invested into qualifying companies.

Octopus EIS investments in the fund are usually sold after three years, allowing investors to release their capital.

Tax Benefits

Provided underlying investments are held for at least three years, you're entitled to:

20% upfront income tax relief: Investors receive tax relief of 20% of the amount invested, up to £500,000 per year, against their income tax bill for this year (or the last tax year, if you choose). For example if you invested £1 million this year, you could receive 20% income tax relief on £500,000 this year, and an additional 20% income tax relief for the other £500,000 against last year's income tax bill, resulting in a total of £200,000 tax relief.

Capital Gains Tax (CGT) deferral: CGT is deferred for the life of the investment. Investors can defer gains made up to three years previously. Deferring previous gains enables investors to use any future capital losses to offset previous gains.

Octopus EIS Closed

Octopus EIS is now closed to further investment. Octopus Eureka is our EIS solution currently open for new investment. For more information, give us a call.

Please call us on
0800 316 2349
or contact us online.