Tax Incentives

As a business owner or investor in Scotland, there are several tax relief schemes and incentives available to you.

Tax incentives for investors

If you’re investing in certain companies, social enterprises or venture capital trusts, you may be eligible for tax relief from several schemes:

Enterprise Investment Scheme (EIS)

EIS is designed so that companies can raise money to help grow their business. It does this by offering tax reliefs to individual investors who buy new shares in your company.

Under EIS, a company can raise up to £5 million each year, and a maximum of £12 million in the company’s lifetime.

Seed Enterprise Investment Scheme (SEIS)

SEIS is designed to help companies raise money when they’re starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in the company.

Social investment tax relief (SITR)

SITR is designed to help social enterprises or charities raise money to support the trading activity. It does this by offering investors tax relief on their investment if the qualifying conditions are met.

Venture Capital Trust (VCT)

You can invest shares in a VCT. A VCT is a company (like an investment trust) that’s been approved by HMRC and invests in, or lends money to, unlisted companies.

Find out about tax relief for investors using venture capital schemes on GOV.UK

Tax incentives for Research and Development (R&D)

Scotland is a great place for R&D and it offers generous incentives for businesses investing in innovation.

The tax on any profits from inventions you patent in Scotland and the rest of the UK is only 10%, compared to the usual 20% corporation tax. If your business is a sole trader, partnership or limited liability partnership (LLP), you do not pay corporation tax and are therefore not eligible for this relief.

Find out more about tax relief for R&D on GOV.UK

In this section

Investment for jobs

You may be able to get funding if your project creates or safeguards jobs in Scotland.

Research and development funding

If you invest in Scotland, your business can benefit from research and development funding for innovation projects.

Attracting investment

Fund your business through venture capital, loans and equity funding.

If you have any questions or want to talk with one of our advisers, we’re always ready to help.