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Investment changes to be aware of in 2017

March 8, 2017

investment options for 2017

By Louise Misiewicz

What are the risks with EIS as an investment option?

Do you know what legislation changes are coming?

There have been a number of calls and emails to our offices recently concerning investment risks associated with EIS investments and queries on legislation changes to other investment options.

One of my team of specialist tax managers and wealth planning experts was discussing the benefits of EIS (Enterprise Investment Schemes) with a client last week, as it’s been a hot topic for property investors so far in 2017, and we’ve seen numerous queries from existing buy-to-let landlord clients about this investment option.

I wrote a detailed article about the benefits of Enterprise Investment Schemes recently – which you can review in full here.

EISs are becoming an increasingly important part of a high-net worth individual’s investment portfolio.

This is mainly due to the attractive tax advantages, the investment diversity on offer, and the changes in pension legislation.

What changes are taking place around pensions?

The changes in pension legislation have been designed to reduce the maximum amount that can be saved in a pension, before significant taxes are applied, otherwise known as the lifetime allowance.

An increasing number of high-net-worth individuals expect to exceed the new allowance in their pension pots, which means that to lower tax liabilities investment vehicles such as an EIS can be used in 2017.

I wrote an article last month on how to reduce tax liability in 2017 here which is also worth reading.

How risky are EISs as an investment option?

EIS offerings have been traditionally seen as risky for property investors looking for alternative options.

Historically, there is less diversification in institutional offerings in an EIS. However, there are EIS providers that now offer asset-backed opportunities, and I think they’re a low to moderate risk option.

There EIS market is very diverse, ranging from large retail offerings to 1,000s of EIS companies being created by entrepreneurs whose businesses are best suited to EIS rules with the accompanying tax reliefs.

The article I wrote here on alternative investments for high rate taxpayers is also relevant and useful.

How to engage with us

If you want to understand how to implement this strategy or to discuss other finance/tax questions then please book some time with us using the below calendar.

Please use the redeem code “Article 33” to get 33% off your next consultation call.

If you are looking for a new accountant, then please book some time with us using the below calendar.

Please note that this booking is to describe our services and will not be used to discuss your personal tax affairs.



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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk