The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
In the bloodstock industry the trading tends to focus on the following areas of opportunity:-
Foal pinhooking, whereby a thoroughbred foal is bought at around 9 months old with the intention of it being sold as a yearling some nine months later.
Purchase of fillies and broodmares, with the intention that they will be resold in foal the following sales season.
Investment in bloodstock is high risk, but for UK taxpayers, trading through a company that has Enterprise Investment Scheme (EIS) status, the risk can be considerably reduced through tax reliefs.