Govt urged to increase EIS incentives

EISA says it is worried a proposed reduction in capital gains tax, from 40% to 18%, could remove the incentives to invest in Enterprise Investment Schemes (EIS). Howard Flight, chairman of EISA, explains: “We are concerned that the proposed reduction in capital gains tax from 40% to 18% will reduce the attraction of the EIS to investors for deferring capital gains tax liabilities and have the effect of favouring lower risk/reward investment in established listed businesses.” EISA says the EIS has provided nearly £6bn of investment for small businesses in Britain since its inception in 199...