Investment Director’s thoughts on the Budget 2011

David Mott, Investment Director at Oxford Capital Partners, comments on some of the key points of this years budget.

Budget Boost for EIS

“At last EIS has been set free to drive economic growth and jobs.  The combination of increased tax relief and access to EIS for larger businesses will attract far more capital to drive growth.  This is good news for the economy, good news for exports, good news for jobs and good news for Britain’s growing businesses.”

Income tax relief increase to 30%

“Increasing tax relief has slashed the effective cost of investing in EIS growth businesses.  Now tax payers can benefit from 30% income tax relief on investment in growth businesses and receive the gains free from tax.  With the government effectively stumping up a third of the cost of investing – and giving loss relief if anything goes wrong, the opportunity to invest in a well-diversified portfolio of EIS businesses has never been more attractive.”

Increased investment powers

“Larger growth businesses have the potential to grow faster, generate more jobs and deliver greater export income.  By allowing the individual investment limit to double to £1m, increasing the qualifying company limits to 250 employees and gross assets of £15 million, and increase the annual investment limit for qualifying companies to £10 million from 2012, the Chancellor has recognised the potential of the UK’s knowledge economy to pull the UK out of the doldrums.”

Small firm research and development tax credit

“Research is at the heart of the UK’s knowledge economy.  The Chancellor’s decision to boost the small firm R&D tax credit by 200% is official recognition of the importance of research to the economy and confirms that the UK is committed to backing innovation.”

David Mott, Investment Director, Oxford Capital Partners, is available for comment on potential changes in the EIS regime on 01865 860760.

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