Mercer & Hole Tax Director, Jacqui Gudgion has recently had an article ‘EIS: Managing the expectation gap’ published in AccountingWEB, exploring why the Enterprise Investment Scheme (EIS) creates high expectations for company and investors, which need to be carefully managed.
The EIS affords the sophisticated investor a series of beneficial tax breaks in relation to qualifying investments. As such it is an ideal way to attract seed and growth capital for ambitious companies who need additional finance, particularly where the traditional bank funding route is not an appropriate option. Investing in the EIS is actively encouraged by the government to raise funds for smaller businesses. The qualification process is, however, complex.
The complexity of the EIS is a key reason why the Corporate and Business Tax team at Mercer & Hole have developed a simple Enterprise Investment Scheme (EIS) Eligibility Flowchart. This takes business owners and entrepreneurs through a series of filter questions to provide an indication of whether the business will qualify for EIS relief. Whilst the flowchart cannot cover all relevant points relating to the complex legislation of the EIS, it does provide users with an efficient steer on their chances of qualification.
The Mercer & Hole team have strong credentials when it comes to knowledge of the EIS. Jacqui has recently been awarded the EISA Diploma, joining Tax Partner, Cathy Corns as a member of EISA.