There had been concerns that the exclusion of small-scale renewable energy schemes from EIS relief might result in some decline in EIS investment.
However, the results of the survey are encouraging not only because it suggests that the EIS market is continuing to grow but that investment is continuing to flow into trading companies.
At the same time we are seeing an exponential growth in crowdfunding and it is very clear from the survey that both investors and their advisers are primarily interested in the track record and experience of those who are involved in making EIS investments, taking it as a given that the tax breaks are an essential pre-requisite of this market.
Based on my own experience over many years, I believe that the tax breaks are in any event a great investment by HMRC over the long-haul, it is likely to recover far more in payroll taxes from the companies which are created and built through EIS investment than it loses in tax relief.
A big challenge is that, according to the Office of National Statistics, about 75% of this investment takes place in London and the South East. That represents both a challenge and a big opportunity for those working in the regions to make better use of EIS to invest in and develop their own regional economies.
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