X

About

Advertise

Contact

Jobs

Tools for Advisers

Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Search
Close

About

Advertise

Contact

Jobs

Tools for Advisers

Untitled-1
Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Untitled-1
Linkedin
Twitter
Facebook-f

Extending carry back – what is your view?

Complete the survey and make your views count

by Kim Wonnacott
January 11, 2021
in GBI, News, Sponsored
Extending carry back – what is your view?
Share this story

Par Equity is working with advisers to understand how EIS can be improved as a tax efficient investment tool.  One area of particular interest to Par Equity is the way in which “carry back” works in practical terms for all stakeholders in the industry, including its impact on you as advisers.  We have devised a survey to understand the extent to which you use carry back for your clients and whether increasing the carry back period to 2 years will be of benefit to and your clients.

A reward for your help!

As a reward for your help, respondents will be automatically entered into a prize draw whereby 3 lucky winners will forego a dry January and will have the option to win a special bottle of whisky or gin.

All advisers that complete the survey will be entered into the prize draw, receive a copy of the findings and some further information on EIS.

To access the survey and make your views count, please read about the issues below, and then click here.

The closing date for the survey is 21st January 2021. 

What is carry back?

Carry back is the term used to describe the way in which EIS income tax relief can be secured against an investor’s income tax liability in the previous tax year. For example, the current rules set out that if an investor makes an investment into an EIS qualifying business on, or before, 5th April 2021, then they can offset the 30% income tax relief on the investment against their 19/20 tax liability. Any investment made after 5th April 2021 can not be “carried back” to reduce the tax liability in the 19/20 tax year.

What’s the problem?

In practical terms, the investor (and their adviser) won’t have a good feel for their tax liability for the 19/20 tax year until November or December 2020. This means that in order to advise your clients effectively, you will only be able to use EIS as an investment tool if your client is then fully deployed within the following 4 or 5 months.  This creates deployment pressure for your client, you the adviser and for any EIS Fund manager with the mandate to invest the money by the end of the tax year. There is an increased risk that your client has increased their portfolio concentration to meet the end of tax year deadline.

What’s the solution?

Par Equity is proposing to lobby HMT to increase carry back from 1 year to 2 years, so in practical terms, an investor can make EIS qualifying investments in the 21/22 tax year, and claim income tax relief against their 19/20 tax liability.  This is an important change to the rules for all stakeholders in the industry, smoothing the investment process and potentially increasing the amount invested into young companies:

  • For Advisers: this should allow you to have tax planning discussions with your clients, without deployment pressure and potential concentration risk. So, instead of monitoring EIS Fund managers to deploy your client’s money within 4 or 5 months, there would potentially be 16 or 17 months of runway to reach full deployment, whilst still meeting your client’s tax planning goals.
  • For Clients: this should help your clients to be invested across a larger number of EIS investment opportunities, improving portfolio diversification and investment selection.
  • For Entrepreneurs: this should remove the seasonality of EIS, meaning that entrepreneurs can raise money at all times of the year instead of experiencing a larger wave of capital being deployed between November and early April, and a slightly more barren investment landscape between April and November.
  • For EIS Fund Managers: this should help managers deliver the very best investment opportunities for your clients and will remove potential perverse incentives to deploy money before an artificial deadline which carries the danger of reducing investment performance.

We hope you will complete the survey and make your preferences known. It only takes 5 minutes to complete.

Click here to complete the survey


For more information about Par Equity, please click here 

Previous Post

Friday newspaper round-up: Boeing, Grant Thornton, Signature Aviation

Previous Post

Liberum upgrades Next to ‘buy’ following strong Christmas trading performance

Previous Post

CRH to benefit from Democrat majority in US Senate, says SocGen

Next Post

Monday newspaper round-up: Small firms, Post Office, M&G

Next Post

Sunday newspaper round-up: Vaccines, Impeachment, Jack Ma

Next Post

Sunday share tips: Braemar Shipping Services, Premier Foods

Related Posts

Pembroke VCT sees 2.3x exit in 12 months
News

Pembroke VCT sees 2.3x exit in 12 months

January 15, 2021
£122 billion inflation blow for pensioners and investors
News

Good news for investors as M&G Investments reduces annual charge across large proportion of OEIC funds

January 15, 2021
MP’s put FCA under the microscope
Finance on Social Media

London Capital & Finance judicial review

January 15, 2021
ThinCats
News

Supreme Court judgement in FCA’s business interruption insurance test case

January 15, 2021
UK business prepares to reopen
News

FTSE 100 lower as unsettling economic news overshadows stimulus optimism

January 15, 2021
‘A very difficult March for all participants in the housing market,’ says Ray Boulger
Feature

New UK levy on assets above £500,000 – what do private clients need to know?

January 14, 2021
Next Post

Monday newspaper round-up: Small firms, Post Office, M&G

Sunday newspaper round-up: Vaccines, Impeachment, Jack Ma

Sunday share tips: Braemar Shipping Services, Premier Foods

Podcasts & Films

  • Put an atomic clock in your car, phone and on your wrist
    January 13, 2021
  • The Nexus Scale-Up Fund walk through
    December 21, 2020
  • Net4 x ARIE Capital webinar, hosted by CoInvestor
    December 18, 2020
  • How does Nexus Communicate with clients?
    December 18, 2020
  • Nexus Investments – Reasons for Advisers to be positive in 2021
    December 17, 2020
  • The Nexus Story
    December 16, 2020

Today’s Most Read

  • Wirecard scandal: EY defends itself in the Bundestag
    January 14, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The Wirecard Investigation Team meets again at the Bundestag today. Prompted by investor action following the Wirecard

  • Brexit agreement leaves UK financial services operating under no deal scenarios
    January 11, 2021

    Tej Patel, Partner and Regulatory Practice Lead at Capco, comments on the continued uncertainty facing UK-based financial services firms post-Brexit. Given that financial services were

  • OnePlanetCapital launch new EIS fund
    January 11, 2021

    OnePlanetCapital, a new sustainably driven investment house, has today launched a specialist sustainability EIS Fund to invest in businesses tackling climate change. The new OnePlanetCapital

  • Former Man Group and Octopus Real Estate executives launch Silbury Finance
    January 14, 2021

    Two experienced property finance executives, backed by funds managed by Oaktree Capital Management, L.P. (“Oaktree”), have launched Silbury Finance (“Silbury”), a platform providing bespoke senior

  • Supreme Court judgement in FCA’s business interruption insurance test case
    January 15, 2021

    The Supreme Court delivers judgement in favour of policyholders in the FCA’s business interruption insurance test case The Supreme Court has substantially allowed the FCA’s appeal on

  • London Capital & Finance judicial review
    January 15, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The London Capital and Finance vehicle lost 11,625 investors £237m in January 2019. Today brings news that

  • New UK levy on assets above £500,000 – what do private clients need to know?
    January 14, 2021

    By Paul Fairbairn, partner at Cripps Pemberton Greenish On 9 December the self-styled and in no way government-affiliated Wealth Tax Commission published their findings. This

  • Unpicking the jargon of responsible investing
    January 12, 2021

    George Robinson, Business Development Manager for VALA Capital, wrote the following article to help explain the difference between ESG and Sustainable investing.   Investors are increasingly

  • The ten secrets to mastering a last-minute tax return
    January 11, 2021

    Your self-assessment tax return deadline is due by midnight on 31 January. Last year, 11.1 million people filed a return on time, more than 70,000

  • Canaccord unveils new ESG portfolios on Embark Platform
    January 12, 2021

    Canaccord Genuity Wealth today launches an Environmental, Social and Governance (ESG) portfolio range available on Embark Platform. Financial advisers using the Embark Platform will now be

More Articles

Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Meet the manager of the M&G Global Listed Infrastructure Fund
Interviews

Meet the manager of the M&G Global Listed Infrastructure Fund

December 15, 2020
Par Equity is the bright EIS star of the North 
Interviews

Par Equity is the bright EIS star of the North 

November 23, 2020
What’s next for Mercia?
Interviews

What’s next for Mercia?

November 2, 2020
M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell
Interviews

M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell

October 21, 2020
People Behind the Product: Pippa Gawley, Zero Carbon Capital
GBI

People Behind the Product: Pippa Gawley, Zero Carbon Capital

October 7, 2020
People Behind the Product: Matthew Steiner, Stellar Asset Management
GBI

People Behind the Product: Matthew Steiner, Stellar Asset Management

October 6, 2020
People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners
GBI

People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners

October 5, 2020

About Us

​IFA Magazine – for today’s discerning financial and investment professional.

Published ten times a year, IFA Magazine has been winning a keen and enthusiastic following among Britain’s premier financial advisers, planners and paraplanners.

Newsletter

    Follow Us

    Linkedin
    Twitter
    Facebook-f

    © 2021 All rights reserved​ to IFA Magazine | Website by: Nivo Digital | Terms and Conditions

    Do NOT follow this link or you will be banned from the site!

    Adblock Blocker

    We have detected that you are using

    adblocking plugin in your browser. 

    Keep updated on the most important financial events 

    Make sure you are an informed

    wealth professional..

    IFA Magazine
    • News
      • In the Press
      • Politics and Finance
      • General
    • Featured
      • Podcasts & Films
      • Interviews
      • Events
      • Finance on Social Media
      • Jobs
      • MPS Report
    • GBI
      • Tax Efficient Investments
      • Open Investment Opportunities
      • People Behind the Product
      • GBI Magazine Issues
      • About GBI
    • Business
      • Regulation and Compliance
    • Magazines
    • The M&G Adviser Hub