Autumn Statement: Osborne launches new EIS scheme

Chancellor George Osborne has unveiled a new enterprise investment scheme (EIS), giving investors 50% tax relief for investing in business start-ups.

Investors will be given 50% income tax relief on investments of up to £100,000 in new businesses, with each company eligible for £150,000 of investment in total. The scheme will also include a capital gains tax holiday for the first 12 months to incentivise investors to part with their cash in new businesses. The scheme will start in April next year and will give new businesses a much needed boost in securing investment at a time when bank lending to small businesses is in steep decline. According to the British Bankers' Association new loans to firms with a turnover of less than £...