INVESTING Individual Investor Financial Adviser Institutional Investor FUNDING Entrepreneur Real Estate


Your client’s key objectives were:

  • Investment objective: Diversification
  • Tax objective: Inheritance tax planning

The results:

Based on the objectives you selected, we’ve suggested tax-efficient investments you might want to consider.

We’ve broken these suggestions down by those that meet:

  • Both the investment and tax objective
  • The investment objective only
  • The tax objective only
Investment and tax objectiveInvestment objectiveTax objective
Enterprise Investment Scheme Venture Capital Trusts or Enterprise Investment Scheme Enterprise Investment Scheme or Business Relief (unquoted or AIM)

Tax-efficient investments

What is the Enterprise Investment Scheme?

Investors in an EIS portfolio own shares directly in a portfolio of early-stage companies. EIS typically appeals to experienced investors who want to back companies with high growth potential. Investors can claim generous tax reliefs because of the risks involved, which include loss relief when an underlying investment returns less than they invested.

What are the reasons to invest?

High growth potential

Access to high-risk opportunities with the potential for high growth.

Tax reliefs

Reliefs include upfront income tax relief, tax-free growth, loss relief, capital gains tax deferral, and inheritance tax relief.


Access early-stage companies investors wouldn’t hold in a mainstream investment.

Points to consider

An EIS portfolio invests in small early-stage companies. The combination of tax reliefs available makes an EIS-qualifying portfolio a compelling structure through which to target high growth. 

Investors must hold shares for a minimum of three years to keep certain tax reliefs claimed and should be prepared to hold their shares for significantly longer to allow time for growth and liquidity. 

If your client is looking for relief primarily from inheritance tax, in some cases, ElS investments will not be the most suitable option, especially if they’re looking to target predictable returns.

Risks to bear in mind

Capital at risk

The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.

Volatility and liquidity

VCT, smaller and unquoted company shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.

Qualification status

Tax reliefs depend on VCTs maintaining their qualifying status or portfolio companies maintaining their BR- or EIS-qualifying status.

Tax treatment

Tax treatment depends on individual circumstances and could change in the future.

Enterprise Investment Schemes from Octopus

VCTs from Octopus

Business Relief-qualifying investments from Octopus

Octopus Inheritance Tax Service

A service targeting a steady, predictable return. It has been helping investors pass on more of their wealth since 2007.

Octopus AIM Inheritance Tax Service

Helping investors pass on more of their wealth, while targeting growth by investing in companies listed on the Alternative Investment Market (AIM).

Octopus AIM Inheritance Tax ISA

Investors with large ISA pots can plan for inheritance tax while keeping their wealth in an ISA wrapper.

We’re here to support you

If you’ve got a question about any of our products or services, please get in touch.

Get in touch

Out of office hours? Use our form and we’ll do our best to contact you within 24 hours.

Call us

Use our postcode search to find the contact details of the people who look after your firm.

Please read: We do not offer investment or tax advice, and we always recommend investors talk to a financial adviser before making investment decisions. This advertisement is not a prospectus. Investors should only subscribe for shares on the basis of information contained in the prospectus and Key Information Documents (KID), which are available in the document section of this page.