Commenting on today's Budget, Lizzie Hill, tax partner at Deloitte in Cambridge, said: “The Enterprise Investment Scheme attracts investment into many of the UK’s fast growing and entrepreneurial businesses. Many high growth R&D companies will welcome the doubling of the limits for knowledge investment companies.
Deloitte: Doubling of EIS relief welcome but still too complex for small businesses
"However, additional layers of anti-avoidance introduced by the so-called risk to capital condition will add further challenges in a system that is already highly complex for small businesses to apply.
“We support making the relief more targeted and focusing it on high risk investments into growth companies. However, we’d also want to see a far simpler system with clear and objective tests rather than adding on additional layers of anti-avoidance which add risk and uncertainty to business.
“EIS relief currently costs about £325 million per year and the second largest category of businesses receiving EIS investment is high tech.“
The Deloitte Cambridge office comprises 8 Partners and over 250 staff who deliver a full range of professional services to the East Anglian region. As well as focussing on the life sciences and technology sectors for which the region has become so renowned, the office has long standing specialisms in other sectors including the professions, consumer business, food and agribusiness.