Expect post-Brexit tax-efficient tweaks - report

EIS and SEIS investors can expect a post-Brexit government to enact tweaks to the regulations governing investment in the tax-efficient sector, but they should not expect a wholesale roll back of more recent EU State Aid rules, according to sector experts.

The EU-mandated restrictions imposed by the government on the tax-efficient investment sector in 2015 have been the cause of significant disruption with managers now barred from investing in MBOs and with new rules imposed on replacement capital. Combined with separate moves to end the opportunity to invest in renewables and subsequently all energy-related companies, it means EIS and SEIS investors are now more clearly being directed towards higher-risk growth companies. Mark Brownridge, director general of the Enterprise Investment Scheme Association (EISA), pointed out that once Art...