The EIS Evolution: How will incoming changes affect investors?
- On March 4, 2019
- By GrowthInvest Admin
Unveiled by the government back in 1993, the scheme was designed to help small, promising companies access finance by offering generous tax breaks to investors (you can claim income tax relief of 30 per cent when you buy shares in EIS-eligible companies).
The EIS has gone through various phases over the years. One example is the changing stance on renewable energy projects.
For years, the government had actively used the scheme to attract investors to renewables, but in 2015 it decided to stop these projects from benefiting from EIS perks. This was partly because the tax breaks had driven down the cost of renewable energies, making it easier for the industry to survive without subsidies.
The government also moved the goalposts to prevent misuse of the EIS. Luke Lang, co-founder of Crowdcube, says that the scheme had been abused by fund managers and investors who were exploiting the tax benefits. In fact, there were reports back in 2017 that EISs was helping wealthy investors avoid paying tax.
For further information and to read the full article, please click here
GET IN TOUCH!
CALL US020 7071 3945
FOLLOW US ON
Throughout our site you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.