The EIS scheme is only appropriate for high net-worth and sophisticated investors who are comfortable with high-risk investments.
The EIS scheme is only appropriate for high net-worth and sophisticated investors who are comfortable with high-risk investments, held for the medium term, understand the potential capital loss and have any one (the more the better) of the below:
• Have income tax liability of at least £3,000
• Want to defer capital gains tax
• Wish to reduce their inheritance tax liability for their beneficiaries
In most situations, investors will already have maximised other tax efficient investments, such as pensions and ISAs.