European Union – will there be good news on EIS?

With ever more troubled times and worrying economic  news from around Europe, can we expect some good news soon?

In the current economic environment it is understandable why the Government is keen to encourage the use of the Enterprise Investment Scheme (EIS) to assist businesses in the raising of investment capital. We, at NLP, are experiencing unprecedented demand for our services with regard to EIS at every level, from administrating the scheme, structuring businesses, getting approvals and preparing share offer documents.

The Government’s announcements at the time of  the 2011 budget, particularly  the rise to 30% of immediate Income Tax relief on qualifying investments (now sanctioned by the European Commission) has made EIS even more attractive. We are also  looking forward to 2012 when it is anticipated that the limits on the size of a qualifying company and the amounts that can be raised should increase significantly, making EIS an even more accessible scheme to even more companies. However, as at early November 2011 the European Commission had not approved these latter  increases and we eagerly await some good news from Europe, surely we are due some?