A TAX expert has warned businesses in Swindon they may be missing out on a scheme that could help them raise money.

The Enterprise Investment Scheme is a way of raising private equity investment for unquoted trading companies as well as business start-ups.

Mike Ward, a specialist tax consultant with Morris Owen in Swindon, said: "The tax reliefs offered by EIS are extremely valuable and should be considered when setting up a new trading company or raising further funding."

In April the limit an individual can invest was raised from £150,000 to £200,000.

There are three ways in which investors subscribing for EIS shares can obtain tax benefits.

Income tax relief is available for cash subscriptions in new fully paid-up shares in an unquoted qualifying company, provided certain rules are complied with.

Capital Gains Tax exemptions are available when EIS shares are held for at least three years and subsequently sold, provided the income tax relief has been claimed and not clawed back.

And through Capital Gains Tax reinvestment relief it is possible to invest unlimited amounts into EIS qualifying companies and defer existing capital gains by doing so.

EIS is restricted to companies with gross assets of £15 million before share issue, and £16 million afterwards.