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Does my EIS fund manager include tax relief in their returns forecast?

by | Mar 4, 2021

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Before you allocate your clients money into an EIS fund with a great returns forecast you would be wise to ask, do these figures include tax relief?

As James puts it in this video, tax relief is a by-product of EIS and VCT’s, if a manager deploys funds into a company under EIS then they qualify for tax relief.

However, EIS fund managers can include tax relief in the returns forecast of that fund.


So it’s crucial advisers are aware of this practice, because it can inflate the appeal of a fund.

James supplies a simple solution, ask the fund manager before you advise your client.

Working at one of the major platforms in the tax-efficient space, James is well poised to comment on EIS. He oversaw some 5,000 EIS transactions over the last decade.


At SidebySide, James joins a management team responsible for over $1.5bn in exits to date. SidebySide specialises in investments into later-stage EIS businesses already producing over £1m of revenue, Helping to mitigate the start-up risk prevalent in a lot of EIS investments.

This is part five of this series, check out part onepart two, part three, and part four to get caught up.




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