Tax-efficient funds lining up for platform launch

Tax-efficient funds lining up for platform launch

A number of enterprise investment schemes could be set to launch on “well known” adviser platforms in the near future, according to one industry expert, as talks on integration between several larger fund managers and operators move into concluding stages.

Daniel Kiernan, research director at specialist alternative assets consultancy Intelligent Partnership, said he hoped the move would counter common complaints by advisers, many of whom site lack of platform access as a key reason not to invest in EIS.

The regime is designed to help boost investment into smaller and growing businesses by offering investors 30 per cent tax relief upfront, as well as exemption for capital gains made within a portfolio and loss relief against income tax.

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Qualifiying companies have to have less than £15m in assets and fewer than 250 employees at the time of the investment.

Speaking at an FTAdviser tax planning conference in London, Mr Kiernan said several “big” EIS fund managers were in “beyond concept” talks with larger platforms, with likely announcement of the first wave of launches with operators likely to come “very shortly”.

He added that given the need for independent advisers in particular to review the wider market post-RDR, the move would mean most would “be very unlikely to have a good excuse not to at least consider” EIS for many clients.

Mr Kiernan added that his own firm was also seeking to respond to other complaints commonly heard among advisers over transparency of EIS funds by bringing out a web portal of its own listing all of the available offers in the market.