EIS enjoy top tax-year end growth: October

EIS enjoy top tax-year end growth: October

Octopus has completed its largest tax-year end EIS fundraising to date, which has been ascribed in part to the changing pension legislation.

John Thorpe, business line manager for EIS at Octopus Investments, said he expected to see the popularity of the investment product continue to grow on the back of pension changes, such as the reduction in the lifetime allowance limit from £1.25m to £1m.

Mr Thorpe said: “In the year that EIS turned 21, record fundraising figures confirm what a valuable planning tool it has become for many investors.

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“We have seen interest rise in recent years not only thanks to increased awareness about the benefits of smaller company investing but also due to changes in pensions legislation, and have just completed our largest tax year end EIS fundraising to date.”

He said it was “inevitable” that the Budget changes to the lifetime allowance would lead more people towards EIS as a tax-efficient investment solution.

Adviser view

Jonathan Beardmore, an IFA for Oldham-based Pearson Solicitors and Financial Advisers, said: “I think it is inevitable that people are using VCTs and EIS more frequently as a way to mitigate tax so I can see the popularity of these as a tax planning vehicle.”