Now that the UK has left the European Union, the Government should relax the rules around the flagship Enterprise Investment Scheme (EIS) in the Budget, says PE firm Growthdeck. The Enterprise Investment Scheme (EIS) encourages high net worth individuals to invest in growing British businesses.

First the Government must confirm in the Budget that it will scrap the ‘sunset clause’ effectively imposed on EIS by the EU. The sunset clause means that the EIS scheme needs to be reviewed and renewed in April 2025. This clause was requested by the EU in order to review the assistance the UK government was providing to UK businesses under the scheme.

Since Brexit, the UK is no longer bound by these EU requirements. Growthdeck says that in this week’s Budget, the Government should confirm that EIS will be made permanent, allowing investors to plan vital long-term equity investment in UK SMEs. Raising funding for small businesses is likely to become significantly more difficult as interest rates rise, making the role of EIS even more important.

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