Investors who are intending to use the tax-efficient Enterprise Investment Scheme (EIS) are being warned that the choice may result in them missing out if they wait until the end of the year to commit their money.
EIS investments receive 30pc tax relief. This can be claimed back through your yearly tax return. The scheme is also inheritance tax free after two years.
In April legislation put into action that limited earners of over £150,000 per annum to pension contributions of £10,000 a year. The recent cut in the amount higher earners can put into their pension has driven the demand for the scheme. Wealth Club, a business that specialises in the EIS and other tax-efficient investments, have side its poll of higher earners results showed that 70pc would look into tax-efficient schemes such as EIS, Seed Enterprise Investment Schemes and venture capital trusts as a result of the lower pension limits.
For more information on tax and accounting follow our blo