EISs are a viable option for IHT mitigation

vct

Despite their higher risk and lower income tax relief compared to VCTs, enterprise investment schemes are an efficient way for high net worth investors to mitigate inheritance and capital gains tax

With the recovery in the stock markets, investments in tax efficient vehicles such as ISAs, pensions, Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS) are once again on the increase. But what should we be advising our clients - can EISs live up to the tax breaks of the VCTs? EISs were a replacement for Business Expansion Schemes, and were first introduced in 1994. EISs were intended to help certain types of small and higher risk unquoted companies raise capital by providing a range of tax reliefs for investors. They are normally more suitable for sophisticated invest...