EIS carry back relief restrictions are being lifted. This means that the total investment, made at any time within the tax year, can be carried back and treated as if invested in the previous tax year.  Before now, only a maximum of £50,000 could be carried back, and then only if invested by 6 October. This relief is effective from the current tax year 2009-10.

Funds raised will now only need to be spent within two years. Previously, the requirement was 80% in the first 12 months, with the remaining balance to follow over the next 12 months.

There was previously an anomaly under the EIS legislation whereby shares were issued to both qualifying and non-qualifying EIS investors. All funds raised had to be used for EIS qualifying purposes and within the EIS time limits referred to above.

These changes are effective for EIS and CVS investments made on or after 22 April 2009.