Enterprise Investment Scheme (EIS) deferral relief enables an individual to reinvest gains arising on the disposal of assets into shares in a qualifying company. When the new EIS shares are sold the deferred gain comes back into charge.
Any ER that would have been available on the original gain is not available.
From 3 December 2014 gains eligible for ER, which are deferred into investments that qualify for the EIS or Social Investment Tax Relief (SITR), will benefit from ER when the gain comes back into charge.
This means that ER will not be lost as a result of investing in shares that qualify for EIS or SITR.