EIS Report for Financial advisers (Panacea Advisor)

Intelligent Partnership: Enterprise Investment Scheme (EIS) Industry Report 2014

The first ever industry-wide report on investments that qualify for the Enterprise Investment Scheme (EIS) has found a noticeable increase in the numbers of investors and advisers planning to include EIS in their client portfolios over the next 12 months.

  • More than half of advisers expect to increase their use of EIS over the next 12 months
  • Tighter limits on annual and lifetime pension allowances, along with more generous rules for qualifying companies, are driving growth in EIS investing
  • 91% of advisers recommend EIS investments primarily for the tax benefits, whereas investors are more focused on the level of returns available with the tax benefits being less important
  • Most advisers who do not recommend EIS are concerned that the exits from the investments are unclear

The report published by alternative investment research company Intelligent Partnership, found that more than 53% of advisers surveyed are planning on increasing their use of EIS, citing EIS as an attractive, tax efficient investment option.

The reports research found that tighter limits on annual and lifetime pension allowances, a freeze on the Inheritance Tax threshold until 2019 and a growing awareness of the need to diversify away from public markets are key drivers behind the move to EIS investments.

The report explains the background and rules governing the EIS sector and the risks and benefits of small company investing. It assesses how the tax breaks available under EIS tilt the risk reward ratio back in favour of the investor and looks at how to construct a diverse portfolio of EIS investments. The report also includes an analysis of 244 investment offers and and findings from surveys conducted with advisers and investors.


Read the full report here on the Panacea Advisor website.