Tom Hopkins: Cut red tape on EIS now - or risk chokepoint

Give more flexibility to approved funds

clock • 4 min read

Despite the best of intentions, change for the sake of change often leaves us yearning for the past - so, please Mr Chancellor, says Tom Hopkins, make one more change before the EIS sector chokes on red tape

The rules governing Enterprise Investment Schemes (EIS) have been changed only relatively recently and so there would have been a collective sigh of relief that EIS - and venture capital trusts - were not mentioned in the Budget. Those recent changes mean, mostly, that capital has now gone back to what is was designed to do and support genuine growth businesses - as opposed to simply providing tax relief for the lowest possible investment risk.  Undoubtedly this is a good thing. Lots of advisers and, by extension, their clients like the fact investing in EIS helps both the economy and th...

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