The Enterprise Investment Scheme Association (EISA) has launched a guide to help advisers understand and explain the Enterprise Investment Scheme (EIS) changes in Chancellor Philip Hammond's first Autumn Budget.
The free guide EIS: new landscape, new opportunities explains the background to all the Budget's changes, including why capital preservation schemes will no longer be able to capitalise on the benefits associated with EIS.
The headline change in the Budget means an investor will be able to enjoy double the initial income tax relief in EIS - £600,000 - as of 6 April 2018. The caveat of the doubled relief limit, however, is that any amount above the first £1m must be invested in "knowledge-intensive" companies.
EISA director general Mark Brownridge said a survey carried out by the association post-Budget found half of advisers expect to see more investor interest as a result of the changes.
"Even many advisers who have never used EIS products before are recognising they will be challenged to discuss the options with clients in the months and years ahead," he continued. "So we felt it was important to produce a guide to help explain to everyone where EIS now stands."
"Before the Budget there was a lot of speculation EISs were at risk," added Laurence Callcut, partner at one of the guide's sponsors Downing LLP. "So when the Chancellor announced there were no changes to the underlying tax reliefs and he was doubling some of the investment limits, this was most welcome."
Mark Brownridge is one of four experts who will be discussing the implications of the Budget and the government's response to the Patient Capital Review with Professional Adviser editor Julian Marr in our webinar Why the future's now the future for tax-efficient investors at 11am on Tuesday 23 January 2018. You can register or find out more information here
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