Warning on EIS budget clampdown

Plans to stop high earners abusing tax reliefs

The Treasury is understood to be considering plans to stop high earners abusing tax reliefs available through Enterprise Investment Schemes(EIS), according to a report.

The Sunday Times reports the Treasury is responding to accusations that EISs - designed to provide funding for promising UK start-up companies - help wealthy investors avoid paying tax. How can we build a fit for purpose Patient Capital Industry? Proposals under consideration include cutting the level of tax relief, increasing the period an investment must be held to over two years, and placing greater restrictions on companies that qualify for funding. EIS qualifying companies can receive investment of up to £5m a year but they must have been operating for under ten years and have...