Pixel

Enterprise Investment Scheme Providers

Gary Green
Gary Green
November 12, 2018

The EIS scheme was originally designed to encourage investors to directly invest in companies themselves.

However, there are now many EIS providers where professional managers work to select suitable EIS companies that would be of interest to their would be investors.

These providers typically offer EIS solutions or funds in either single companies or via a professionally managed fund investing in a selection of EIS companies in specific or multiple sectors. There are also some providers that target substantial capital growth for investors. Others focus on capital preservation depending on the risk profile of the investors.

Finding EIS Providers

Following the start of the new tax year, many EIS providers are reporting an upswing in interest from investors looking to purchase shares in EIS qualifying investments. This follows a number of changes to the scheme announced in the Autumn 2017 Budget that doubled the EIS investment limits for knowledge-intensive companies and increased the amount of money that companies could raise.

These changes are helping to encourage investment in EIS schemes with higher risks and rewards.

The EIS providers help to drive investment in many EIS schemes and offer investors a wide range of options. The providers can also help to speed up the EIS process by being very aware of the rules of the scheme and acting as a go-between with the company and investors.

The provider will also seek to raise the money for an EIS company. They ensure funds are spent as quickly and efficiently as possible. This helps investors make an exit at the earliest opportunity.

Due Diligence on EIS Providers

The providers usually make their money by charging the companies seeking funding a fee. In some scenarios, investors are also charged a fee. There can also be additional fees for investors dependent on the returns achieved on their investment.

Before making any investment, it is important to carefully check what fees are being charged.

It is also important to check the track record of any EIS providers. These investments can certainly have a place in an experienced investors portfolio. However, it is important to be fully aware of all the associated risks and choose any provider wisely.

To discuss further, contact us here.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
September 21, 2021
How to Claim EIS Income Tax Relief in 2021

If you need to know how to claim EIS income tax relief and enjoy what is...

September 2, 2021
Recovery Loan Scheme - What Is It and How Do I Apply?

As businesses seek to re-open and recover from the global pandemic, there are various forms of...

August 16, 2021
The Super-Deduction Scheme - How Does It Work?

You may have heard the term 'super-deduction' recently and wondered if you could be affected by...

August 12, 2021
The Tax Benefits of Non-Domiciled Status for UK Residents

Having a Non-Domiciled Status if you reside in the United Kingdom can have great benefits for...

July 9, 2021
Stamp Duty Land Tax (SDLT) Surcharge for Non-UK Residents

Stamp Duty Land Tax (SDLT) rates have changed again for non-residents buying a home in England...

July 7, 2021
How Is Cryptocurrency Taxed & Do I Need to Fill A Self-Assessment?

Cryptocurrency may live online with no government control or borders, but if you are in the...

July 5, 2021
Venture Capital Schemes: Tax Relief Guide For Investors

When it comes to finding out what tax relief is available for investors using a venture...

July 2, 2021
Claiming Business Asset Disposal Relief in 2021

Business Asset Disposal Relief (BADR) used to be known as Entrepreneurs’ Relief before 6 April 2020....

June 30, 2021
What Is Form 17? Transfer Of Beneficial Ownership

As a general rule, the fall-back position for couples who live together with their spouse or...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2021 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram