What is an Enterprise Investment Scheme (EIS)?

An EIS is a UK investment scheme that supports early-stage companies by offering tax reliefs to high-net-worth investors. By investing in EIS funds, investors can enjoy potential capital growth while providing financial support to innovative UK businesses.

How can I invest in EIS schemes?

You can invest in EIS schemes by exploring various EIS funds managed by professional fund managers, consulting a financial advisor to understand your eligibility, and comparing available funds to select one that aligns with your investment goals.

What are the tax benefits of investing in EIS funds?

EIS funds offer several tax benefits including 30% income tax relief, capital gains tax exemption on profits from EIS shares, capital gains deferral when reinvesting other gains, inheritance tax relief, and loss relief on high-risk investments. Tax reliefs depend on holding periods and individual circumstances.

When can you claim income tax relief on the EIS investments?

Income tax relief can be claimed after shares are allotted and you receive your EIS3 certificate from the company in which you have invested.

Can EIS reduce Capital Gains Tax (CGT)?

Yes. Selling EIS shares after the minimum holding period may make you eligible for capital gains tax exemption, reducing your CGT liability.

Can you carry back EIS tax relief?

You can carry back EIS tax relief to the previous tax year in certain cases, allowing you to apply the relief retroactively. Specific rules and limitations apply, so it is advisable to consult a financial advisor.

How long do I need to hold the investment?

To qualify for all tax reliefs, EIS investments must be held for a minimum of three years. Typically, EIS investments are illiquid and may require a commitment of 3-7 years.

What is a Knowledge-Intensive (KI) EIS fund?

A KI EIS fund invests in Knowledge-Intensive companies – a status given by HMRC. These companies focus on research & development, innovation, and intellectual property. KI EIS funds target companies with strong R&D and innovation activities.

Why should I invest in a KI EIS fund?

Investing in a KI EIS fund allows you to support innovative, R&D-driven companies while enjoying enhanced tax benefits compared to regular EIS funds.

How is investing in KI EIS different from regular EIS?

KI EIS funds offer higher investment limits (£2 million per year vs £1 million), greater tax predictability with fund closing dates, assured carry-back tax relief, and a single EIS5 certificate for claiming tax relief, in addition to standard EIS benefits.

Is my investment at risk?

Yes. Investing in small, unquoted companies is high risk. Proper due diligence is crucial, and you should only invest money you are prepared to lose. These investments are not typically protected if something goes wrong.

How can I get started?

To invest in a Knowledge Intensive (KI) EIS fund, visit o2hventures.com/funds, explore available investment opportunities, and contact the o2h Ventures team for guidance and further details.

the o2h human health knowledge intensive EIS fund

the o2h knowledge intensive EIS fund is an HMRC approved fund that invests in EIS qualifying biotech companies along with enabling services, tools and AI technologies.

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highlights

                                    Invest in the HMRC approved, the o2h Knowledge Intensive EIS fund which allows you to carry back EIS tax relief to 2022/23, or the benefit of investing in this current year, deadline 05th April, 2024 (capital at risk, depending on individual circumstances)                                        
Two part investment focus of Access & Incubation, providing unique opportunities and reducing investment risk by being deeply involved.                                        
Aiming to build a diverse portfolio for investors with an initial Portfolio of 5-10 unquoted and/or AIM-listed companies.                                        

                                    Sunil Shah, CEO - o2h Ventures

fund overview

HRMC Approved	Yes
Fund Status	Open, Closing on 05th April 2025
Fund Size	Target £10m
Current AUM	£3.2m
Total Manager's AUM	£8.05m
Expected Exit	3-7 years
Founder's Investment	Minimum 10% of every investment

EIS tax relief is very attractive for UK tax payers

You invest £50k

EIS gives you £15k tax relief from HMRC

EIS gives you £25k tax relief from HMRC

IF COMPANY VALUE DOUBLES

Investment now worth £100k

£50k profit

+ £15k income tax relief

- £10k performance incentive

= £55k net profit

IF VALUE STAYS THE SAME

Investment still worth £50k

£0 profit

+ £15k income tax relief

- £0 performance incentive

= £15k net profit

IF COMPANY FAILS

Investment now worth £0

£50k loss

+ £15k income tax relief

+ £15,750 loss relief *

- £0 performance incentive

= £19,250 capital loss

* Loss relief calculated on higher rate tax bracket Worked example is net of any fund fees

*Tax relief depends on an individual’s circumstances and may change in the future.

independent reviews

Hardman & Co

MICAP

why o2h ventures?

+History in grassroots science: We have a track record of nurturing and investing in emerging life science and tech companies – the o2h ventures team are leaders in the biotech community and have been involved as investors, holding various board/industry positions awe well as being engaged in grassroot scientific activity for over 20 years.

+Evaluation: Since its inception, the o2h group has developed a rigorous process to evaluate its deal flow, particularly regards seed investments. Opportunities come from a wide range of sources, as a result of the o2h group’s extensive network of contacts.

+Access to scientific talents: The team have developed access to some of the most interesting scientific ideas and talent in the UK, achieving a clearly differentiated position through its live working relationships, fostered over many years, working as a discovery services company. This potentially fives o2h ventures earlier access than competitor to some of the most promising companies.

+Business model: The business model identified by o2h ventures gives it an edge both in terms of access to opportunities as well as an understanding of the support they require post investment in terms of incubation. By combining access and incubation we are providing a unique opportunity, reducing investment risk by being deeply involved and the team believe that this will increase Fund’s prospects of making successful exits.

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