Investors drawn by the tax planning benefits of EIS, which champions investments into smaller companies, are now able to put their money into the firm’s latest tranche which invests in companies in the energy industry and the anaerobic digestion sector.
“It is great to see continued demand for EIS as more and more people recognise the meaningful role that EIS can play as part of an investor’s portfolio in helping them target their financial goals,” John Thorpe, business line manager, said.
The firm has been investing in the energy industry for four years, with investments in solar energy and UK based developers of anaerobic digestion (AD) plants.
“As we have seen with solar, the energy market opportunity in the UK is significant. It is a growing industry, and, as evidenced by the Finance Bill 2014, the government is actively encouraging investment,” Matt Setchell, head of the renewable energy team, said.
“We build partnerships with the companies we invest in, with management teams that have extensive experience in the sector. This enables us to get closer to the technologies and help manage risks while supporting management to realise a business’ full potential,” he added.
EIS was introduced by the government in 1994 to encourage investment into smaller companies in the UK. Investments into an EIS can provide investors with tax reliefs providing the investment in the underlying companies are held for at least three years.
These include 30% upfront income tax relief, capital gains tax deferral, up to 45% loss relief and tax-free growth. Investments are also free from inheritance tax after two years.
