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Data shows few investors to benefit from doubling EIS limit

Doubling of EIS tax relief limits announced in this week’s budget would likely impact a very limited group of investors, with only 150 individuals using the full existing limit of £1m in 2015/2016.

Government data published last month shows that figure was slightly down from previous years. In 2014/2015 and 2013/2014 160 and 195 individuals respectively reached the £1m limit.

This week Chancellor Philip Hammond said the Government would be doubling the limit to £2m for knowledge-intensive companies.

Despite the small numbers of individual investors benefiting from tax relief in the last financial year, the group collectively invested £140.5m into EIS qualifying companies.

Growthdeck head of business Gary Robins says attracting significant new monies into EIS qualifying companies is a challenge, and the industry needs increased investor awareness or enhanced incentives, such as increasing income tax relief.

Robins adds: “While doubling EIS investment limits for knowledge intensive companies is welcome news, we would have liked to have seen similar support for the many other non-tech growth companies.”

In total 33,000 applied for EIS income tax relief of 30 per cent.



OMGI transfers £63m Isa accounts to Hargreaves

Old Mutual Global Investors is to transfer £63m worth of Isa accounts to Hargreaves Lansdown. OMGI plans to move its 3,200 Isa customers to Hargreaves with effect from 24 February 2018 and stop its Isa service on the 27 February. The asset manager says the decision comes as clients increasingly demand online access to the Isa […]


Nick Bamford: Pension freedoms have given clients control

When the pension freedoms were first introduced, I could not help thinking it was a clever device to accelerate the income tax take. Instead of waiting many years to take income tax against modest annuity income payments, the government could grab a larger handful straightaway. After a couple of years of reflection, I still think […]

Key themes for 2017

Capital Market Notes, December 2016 Dave Lafferty, chief market strategist at Natixis Global Asset Management, assesses the accuracy of his 2016 outlook and provides his thoughts and outlook for 2017. Click here to read the full article


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