"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.“