Pandemic slows enterprise investment scheme outlay in 2020-21

Money invested through the enterprise investment scheme (EIS) decreased by 12% to £1.658bn in 2020-21. Latest figures from HMRC show that 3 755 companies raised a total of £1 658m of funds under the scheme compared with 4 165 companies raising £1 890m in 2019-20.

As the pandemic hit the UK economy EIS investment in the first three quarters of 2020-21 remained below the level in the same quarters of the previous year. However the last quarter of the tax year shows a rebound back to pre-pandemic levels.

Around £358m of investment was raised by 1 370 new EIS companies in 2020-21. Companies from the information and communication sector accounted for £571m of investment - 34% of all investment. Companies registered in London and the South East accounted for the largest proportion - 65% - of investment raising £1 078m.

The number of...