2 February 2021

In a survey held by Par Equity, working with GBI Magazine and IFA Magazine, we asked financial advisers about their thoughts on extending Carry Back from 1 to 2 years, and the impact that change would have on the EIS industry and investment into early stage companies in the UK.





Our survey identified that carry back is an important consideration for advisers using EIS with their clients. 61% of advisers use EIS, and their clients need to utilise carry back 42% of the time, incurring several additional administrative headaches associated with this feature of EIS.

Of those advisers who use carry back, 25% have experienced issues with deployment by fund managers, citing it as highly problematic for them and their clients.

When presented with the option to increase carry back to 2 years, 100% of advisers thought this was a good idea, with 84% stating it would give them greater confidence in EIS as an investment tool, leading to a potential 60% more EIS clients per annum. This could generate significant additional capital to be deployed in growth companies as the country emerges from the COVID pandemic.

Thank you too all those who took part.

Read more about our findings here and why we think this simple change can stimulate investment into young companies.