Advisers back EIS despite rule shake-up

Tom Sparke, investment manager at GDIM, said advisers have embraced EIS vehicles as a valuable tool in the financial planning process, adding the industry had seen some “huge successes” from investment point-of-view.

He also thought it was a good thing the new rules have not turned away advisers as it suggested they were using the schemes for the “right reasons” and “taking a long-term view”.

Tilney’s director of communications, Jason Hollands, said advisers primarily used the schemes as part of an inheritance tax mitigation strategy and the deferral of capital gains tax liability. 

He said: “These features of EIS remain relevant given the strength of asset prices and the long-standing freeze on the inheritance tax nil rate band.

“However, advisers clearly need to tread ever more carefully when recommending EIS to clients and make sure they have done thorough due diligence on their EIS panel, as well as rigorously assessed the suitability of EIS for their clients.”

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