Warning of EIS Budget clampdown

Sep 18, 2017 | Budget, Investments

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The latest pre-budget rumour/leak (take your pick) is of a ‘clampdown’ on EIS and VCT investments to ‘stop high earners abusing tax reliefs’.

I never quite get this. Time and again, governments decide they want to encourage investment in something, start-up businesses, pensions, the ailing British film industry, trees, windmills…so they come up with a tax break or two. Then they find that those with the biggest tax bills are, surprise surprise, the ones who are investing most So they’re not getting as much tax. So they announce a clamp down. Then, surprise surprise, in a few years, another government decides…you get the picture?

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“Who will benefit from the chancellor’s NI cuts?”

“Who will benefit from the chancellor’s NI cuts?”

I doubt this will come up in many pub quizzes, but the answer is employees, and the self-employed a bit. Not we employers, whose share hasn’t changed. And, as a result of the usual smoke and mirrors, nobody much, as we’ll all actually be paying more tax.