Alex Davies, founder of Wealth Club, a broker that specialises in tax-efficient products for HNW clients, comments on today’s EIS consultation paper: “Today’s consultation, published alongside the Spring Statement, moves to establish a specific EIS fund structure which invests almost solely in knowledge intensive companies. This newly created EIS fund would exist alongside the current EIS scheme but their tax incentives might be different in order to attract money into these potentially higher risk, higher return investments.
“Anything that encourages investment in potentially world beating companies and gives us more businesses like Dyson, ARM Holdings and Abcam can only be a good thing. The one thing the government should avoid at any cost in my opinion is to introduce further complexity. However good the government’s intentions, and however great the benefits, if the rules are too complex investors will be put off.”
The paper can be read here.