New IW Capital EIS Report to Reveal Taxpayer Sentiment

Between the passing of the self-assessment tax deadline on 31 January 2016 and the Government’s upcoming Budget announcement on 16 March, the subject of taxation finds itself under close scrutiny. To help shed light on the tax landscape in the UK – particularly how much tax is being paid by British investors and their attitudes to tax-efficient products – IW Capital is this week to publish the Taxpayer Sentiment Report 2016.

Combining analysis of the latest HMRC data with our own survey of over 2,000 UK taxpayers, the research examines the heavy tax burden being placed on the UK’s top earners. Moreover, it establishes how much more tax is being paid by investors compared to the national average, with a particular focus on people with investments worth more than £40,000.

In order to establish how the UK taxpayer intends to manage their outgoings, the Taxpayer Sentiment Report 2016 also explores investors’ attitudes towards tax-efficient investment products and how many investors are factoring the Enterprise Investment Scheme (EIS) into their tax plans for the year ahead. As one of the few remaining government initiatives that offer tax reliefs in return for investment into SMEs, our research illustrates how important the scheme is for both high-growth businesses and British investors looking for a safe and efficient way to invest their money.

IW Capital’s Taxpayer Sentiment Report 2016, based on an independent, nationally representative survey of over 2,000 UK adults, will reveal:

1. The average amount of income tax paid in the UK in the 2014/15 tax year
2. How much more income tax is paid by Britain’s serious investors
3. The attitude UK investors hold towards the EIS

The report also provides valuable insight from Sarah Wadham, the Director General of the EIS Association (EISA), a not-for-profit organisation that exists to aid the provision of capital investment into SMEs through the EIS. As she notes, the EIS is vital for investors today “because there are very few legitimate ways you can mitigate your tax at the same time as supporting exciting entrepreneurial companies”.

Ms Wadham explains: “People are always conscious of their tax bill, and naturally want to find ways of managing it as effectively as possible. But high-net-worth individuals also like to support early-stage, exciting companies – they like to feel involved in something. The EIS is one of the few ways they can do both these things.”

In addition to delving into the value of the EIS in the context of investors’ tax bills, the Taxpayer Sentiment Report 2016 also emphasises why the Government needs to ensure the EIS is safeguarded and supported in the future. As Ms Wadham stresses within the report: “We all need to be conscious that schemes such as the EIS are extremely important and they contribute a huge amount to the economy; they need to be protected and looked after.”

We look forward to sharing the full report with you later this week.