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EIS and my business: an adviser interview

5 Dec 2023 Reading time: 1 min

Whether you’re new to the Enterprise Investment Scheme (EIS), or you’ve been writing EIS cases for years, you’ll want to consider:

  • Whether you have clients who could benefit from the high growth potential of EIS
  • How you would present the opportunities available with EIS to suitable clients.
  • The best way to integrate EIS into your advice proposition.

In this short clip, these points and more are touched on by Stephen Hedges of Orchard House. He has more than 25 years’ experience advising clients.

Stephen talks to Tim Dickens, Investment Specialist at Octopus Ventures, about his experience and learnings from advising on EIS. You’ll hear how Stephen uses EIS to support clients’ planning, the positive impact on his business, and how he approaches suitability and due diligence.

The Octopus Ventures Knowledge Intensive EIS Fund 23/24 is open to new investment. Watch this webinar to learn more about how the Fund could support your clients’ tax-year end planning.

Risks to bear in mind

Capital at risk

The value of an EIS investment can fall as well as rise. Investors might not get back the full amount they invest.

Tax treatment

Tax treatment depends on individual circumstances and might change in the future. Tax reliefs depend on companies maintaining their EIS-qualifying status.

Long term investments

Investors need to hold shares for three years to keep any tax reliefs claimed. However, investors should be prepared to hold their shares for significantly longer to allow time for growth and exit.

Volatility and liquidity

Investments in smaller companies can fall or rise in value much more sharply than shares in larger, more established companies. They can also be harder to sell.

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