Royal Assent for Changes to EIS Quickens Pace of EIS Investment

Richard Cook



The November 2017 Budget was unprecedented in several ways. Alongside being the first Autumn Budget of its kind, it brought quite different announcements on Enterprise Investment Schemes (EIS) to those anticipated.

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Now, Royal Assent for that Budget, taking place within March 2018, has effectively brought forward the tax-year end.

Once transposed into law, the new criteria and investment limits on EIS will bring a corresponding new range of opportunities for clients. However over the next seven weeks, the focus will be ensuring that clients are putting funds to work in existing EIS vehicles.

We recognise the greater demands placed on advisers at this stage in the year, a time which can often be a scramble. Clients’ attention is highly focused on how they can best deploy funds, mitigate tax liabilities and ensure future financial plans. And they are looking to advisers to help them make sound decisions and take up the opportunities that are right for them.

If investments are made in existing EIS vehicles managed by firms with demonstrable expertise in the tax-efficient space, they can bring several levels of reassurance for investors. The appeal of these open offerings, for clients investing now, is that the products will contain portfolios of investments in EIS-qualifying firms, with advance assurance from HMRC, that are unaffected by the imminent changes to legislation.

Moreover, the underlying investee companies themselves can be easily identified as well-managed firms with strong prospects and predictable revenue streams. Such portfolios are being managed in the ongoing spirit of legislation – focused on exactly the kind of small, growing firms in which the Government wishes to encourage investment and boost the UK economy.

Blackfinch, and its own EIS offerings that remain open for investment, fit this profile. We are established not only as specialists in tax-efficient investing but as a firm with a strong focus on serving the needs for its customers, including both advisers and clients.

Our Evolve Asset Focused EIS Portfolios reflect this, providing several degrees of risk mitigation in response to client requirements, through investment in companies where there is a high degree of asset focus. Meanwhile our Evolve Media EIS Portfolios also reflect our specialist expertise, bringing the chance to invest in similarly well-managed firms with recurring income, in the expanding media and entertainment sectors.

Alongside meeting clients’ needs we look to support advisers with a range of resources and never more so than at this point. Advisers can be assured of a quick response to enquiries, ongoing help with product knowledge, accessible materials and a streamlined investment process. So please get in touch in order that we may help you and your clients.