Following the Spring Budget, businesses and individuals will now be looking towards the new financial year. Arriving on 6 April, the 2016/17 tax year brings with it a fresh opportunity for investors to reassess how they are managing their money.
IW Capital’s recent Taxpayer Sentiment Report revealed that many investors are considering the Enterprise Investment Scheme (EIS) as part of their tax plans for the coming financial year. Our research highlighted that investors in Britain with over £40,000 worth investments are paying on average £26,058 in income tax – more than four times the national average. Of this same group, 54% said they are considering investment through the EIS in 2016/17.
The report findings demonstrate the importance of the EIS for both business progression and for investors. As one of the few remaining government-backed schemes to encourage investment into SMEs, this initiative is clearly on the radar of Britain’s investment-minded population. Moreover, the number of investors turning to the scheme could rise in light of the changes to Capital Gains Tax rates introduced in last week’s Budget – this is something we outlined in our previous blog, which you can read here.
Ahead of the start of the new tax year, IW Capital will be launching the next report in its EIS in 2016 series. The EIS in 2016: Budget and New Financial Year report will help investors fully understand:
- The general tax reforms that were introduced as part of the 2016 Spring Budget that will affect investors and businesses
- The changes to the EIS brought about by the 2016 Finance Bill
- How British taxpayers are approaching the new tax year
From changes to the British tax system, through to insight into how the EIS can help investors manage their investments more effectively, this report will provide investors with a valuable resource as they consider their plans for the next financial year.
We look forward to sharing our EIS in 2016: Budget and New Financial Year report upon its publication next week.