Nucleus: EIS increase offers generous tax advantage for a small group

Tracyann Kneen, senior product technical manager, comments:
“Whilst this measure comes as no surprise, some measures were. Most notable is a doubling of the limit on the amount an individual may invest under the EIS in a tax year up to £2 million, provided any amount over £1 million is invested in one or more knowledge-intensive companies. This potentially increases the relief to £600,000. This is an unexpected move: instead of cutting the tax benefits this offers a very generous tax advantage to a relatively small group of individuals.”