What does EIS stand for?

The correct answer is the Enterprise Investment Scheme. This scheme is a UK government initiative aimed at encouraging investment in small, high-risk companies by offering various tax reliefs to individual investors. Under this scheme, investors can receive income tax relief on the amount they invest, as well as potential exemption from capital gains tax when they sell their shares, given they meet the qualifying conditions. This initiative is significant for promoting entrepreneurship and facilitating access to capital for emerging businesses.

The other options, while they might incorporate related investment concepts, do not pertain to the established scheme recognized in UK taxation policy. The Equity Investment Scheme and Economic Investment Scheme could refer to broader concepts in investment but do not have the same legal standing or benefits associated with the Enterprise Investment Scheme. Similarly, the Essential Investment Scheme does not exist in the context of UK tax law, reinforcing the importance of understanding the specific designations used in financial and investment legislation.