EIS original rate meaning

EIS original rate describes, in Enterprise Investment Scheme practice, the percentage rate of income tax relief that applied for the tax year in which the investor actually obtained EIS relief on the relevant shares. It is a statutory term used in the UK EIS provisions (Income Tax Act 2007) and anchors the relief to the rate in force for that specific year, irrespective of later changes to EIS rates. The concept is used to calculate the relief originally due, and to determine the correct amount to withdraw or claw back if a disqualifying event occurs (for example, breach of qualifying conditions) or where relief is reduced or carried back. It ensures the correct historical rate is applied to that investment when making adjustments. Usage is consistent across England & Wales, Scotland and Northern Ireland because EIS is a UK-wide income tax relief. The term is not used in Ireland, where the separate Employment and Investment Incentive (EIIS) applies under Irish tax law with different rates and definitions. In short: the EIS original rate is the EIS rate for the tax year for which EIS relief was obtained.