Technical update: EIS and SEIS funds

Alternative structures for enterprise investment schemes

clock • 4 min read

Dermot Campbell looks at the difference between alternative investment funds and discretionary portfolios in the context of EIS and SEIS funds and explains why advisers might consider recommending them

Enterprise investment scheme (EIS) and seed EIS (SEIS) funds are slightly unusual because, while they do not really exist, according to HMRC figures to the end of January, they have still accounted for more than £12bn worth of investment since their launch. So why recommend EIS and SEIS funds? There are lots of reasons, including tax reliefs, which - when coupled with competitive fees and thorough due-diligence - can result in lower-risk returns. In order to take advantage of EIS or SEIS reliefs, your client must invest in the underlying companies directly and there cannot be a legal ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Schroders - Beyond the Pulse: Essential insights for financial advisers in 2025

Catch up on the discussion

Professional Adviser
clock 10 July 2025 • 1 min read
Investors 'do not understand' implications of private markets investing

Investors 'do not understand' implications of private markets investing

House of Lords Financial Services Regulation Committee looked at the issues

Linus Uhlig
clock 09 July 2025 • 1 min read
NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read