What is the Guinness EIS? A Guide to EIS funds and Tax Reliefs

The Guinness EIS is a UK Enterprise Investment Scheme (EIS) fund designed to provide investors with access to high-growth private companies alongside valuable tax reliefs. This guide explains how an EIS fund works, the tax benefits available, and how the Guinness EIS operates in practice.

This guide is for educational purposes only and does not constitute tax or investment advice. Tax treatment depends on individual circumstances and may change. Investors should consult their tax adviser before making decisions.  

What is an EIS fund? 

An Enterprise Investment Scheme (EIS) fund is a tax-efficient investment structure designed to support early-stage and growth businesses across the UK. 

Often referred to simply as an EIS fund, it enables investors to access a portfolio of qualifying companies while benefiting from a range of tax reliefs provided by HMRC. 

For investors seeking tax efficiency, simplified administration and exposure to high-growth private companies, understanding how an EIS fund works is essential. 

The Guinness EIS is an example of an EIS fund, providing investors with access to a curated portfolio of qualifying UK companies.

What qualifies as an EIS company? 

To qualify under the Enterprise Investment Scheme, companies must meet specific HMRC criteria. 

Typically, they must be unquoted, carry out a qualifying trade, and have gross assets of no more than £15 million before investment and £16 million afterwards. These limits are increasing from 6th April 2026. They must also have fewer than 250 full-time equivalent employees at the time of investment. 

There are also limits on how much capital a company can raise under EIS and other state aid schemes, as well as restrictions on how funds are used. These rules are designed to ensure that EIS supports genuine growth businesses rather than capital preservation structures. 

EIS tax reliefs explained 

The tax benefits of an EIS fund, including the Guinness EIS, are designed to compensate investors for the higher risk of early-stage investing.

Income tax relief 
Investors can claim 30% income tax relief on qualifying investments. This can be applied to the tax year when underling EIS shares are issued, or, through carry back to the previous tax year. 

The maximum investment eligible for income tax relief per investor is £1 million per tax year. 

EIS carry back relief 
Carry back allows an investment to be treated as if it were made in the previous tax year, subject to unused allowance. This can be useful where investors have prior year tax liabilities or variable income.

Capital gains tax benefits 
EIS offers several capital gains tax advantages. Gains realised on other assets can be deferred by reinvesting into EIS shares. 

In addition, if income tax relief has been claimed and shares are held for at least three years, any gain on disposal may be free from capital gains tax. 

Loss relief 
If an investment is realised at a loss, that loss may be offset against income or capital gains, reducing the effective downside exposure. The loss relief calculation takes into account the benefit of income tax relief claimed.

Inheritance tax relief 
EIS investments may qualify for Business Relief after two years, meaning they can fall outside of an investor’s estate for inheritance tax purposes, subject to legislation and individual allowances. 

Risks to consider 

Understanding the risks of EIS investing is essential before investing in the Guinness EIS or any EIS fund.

EIS investments are high risk and illiquid. Capital is at risk and investors may lose some or all of their investment. Returns are not guaranteed. 

Tax reliefs can help mitigate downside but do not remove risk entirely. These investments are typically long term in nature and are most suitable for investors who understand the risks of early-stage and growth companies. 

The Guinness EIS is a discretionary portfolio service that invests in qualifying UK companies, typically at the Series A stage.

The fund aims to build a diversified portfolio of high-growth businesses across sectors such as technology, healthcare, education, advanced manufacturing and consumer markets.

Investments are selected through a structured due diligence process and approved by the Guinness Ventures Investment Committee.

The Guinness EIS operates in tranches, typically closing each quarter. Capital is deployed into qualifying EIS companies following each close, usually within the same tax year.

Summary 

The Guinness EIS combines the key benefits of an EIS fund, including 30% income tax relief, capital gains deferral, potential tax-free growth, inheritance tax advantages, and access to a diversified portfolio of UK growth businesses.

For investors seeking tax efficiency alongside exposure to early-stage companies, the Guinness EIS provides a structured route into venture investing.

Frequently asked questions 

What is an EIS fund? 
An EIS fund is a type of investment fund that invests in qualifying UK companies under the Enterprise Investment Scheme, offering investors access to a range of tax reliefs. Often it will be refered to as an EIS service, or portfolio service.

What tax relief do you get with EIS? 
Investors can receive 30% income tax relief, capital gains tax deferral, potential tax-free growth after three years, loss relief, and inheritance tax relief after two years, subject to qualifying conditions. 

What is the EIS investment limit? 
The maximum amount that qualifies for income tax relief is £1 million per investor per tax year. This increases to £2 million per year if the companies qualfying for Knowledge Intensive EIS status.

What is an EIS3 certificate? 
An EIS3 certificate is issued by each qualifying company and allows investors to claim income tax relief on their investment. 

Can you carry back EIS investments? 
Yes, EIS carry back allows an investment to be treated as if it were made in the previous tax year, subject to available allowance and HMRC rules. 

Is EIS high risk?
Yes, EIS investments are considered high risk. They involve investing in early-stage and growth companies, which may have a limited trading history, and a higher likelihood of failure compared to established businesses. EIS investments are also illiquid, meaning shares cannot easily be sold, and investors may lose some or all of their capital. While tax reliefs such as income tax relief and loss relief can help reduce downside risk, they do not eliminate it.

Important information 

This article is for information purposes only and does not constitute investment advice. Tax reliefs depend on individual circumstances and may change. Investors should seek independent financial and tax advice before making any investment decision. Capital is at risk.