There is an air of uncertainty amongst the masses regarding the current situation which is unfolding after the United Kingdom’s decision to part ways with the European Union. Considerable ambiguity exists in terms of investment, business continuity and other activities that will be affected by this decision.
As we are heading towards a clearer picture, we came to know that it was more of a political setback rather than economic. It was feared that this situation might create some uncertainty with an impact on the markets. However, it was not the case as they weren’t impacted as it was feared. Since the referendum, volatility in the financial markets has reduced, and the markets are recovering gradually, with the pound sterling stabilising in the market.
The financial market of the United Kingdom has suffered due to the implications of Brexit as political uncertainty has driven investment out of the country. Foreign investors are looking at alternative markets in the European region to invest their funds. Markets in neighbouring countries such as Germany, France and the Netherlands are gaining momentum, which are developing as financial hubs for investment. Loans and interest rates are unstable, which is a significant reason for this shift. Similarly, for local investments and companies, this uncertainty is leading to banks being an unreliable source of debt funding in the country, which is forcing companies to look at alternative sources of financing.
All is not bleak, and despite the speculation of adversity in the market, new opportunities are opening up for potential investors. At a time like this, especially with foreign investors not contributing to the UK market, the opportunity is open for local investors to invest in favourable market sectors. One of the prime investment opportunities is by investing through the Enterprise Investment Scheme. Locals who are citizens of the UK can seek to invest and benefit from this scheme.
IW Capital is a private equity house that prides itself on originating and leading tax efficient investments through the Enterprise Investment Scheme.
The Enterprise Investment Scheme provides extremely beneficial conditions for local investors as it seeks to regulate the local economy through local investors. These investment opportunities are available to the UK population, and EIS investments are a safer bet in this uncertain market. EIS investments ensure that at least 50% of your investment is always secure and hedged against risk. This means that if things do not work out, instead of losing all of the investment, most of it is claimable as relief in income tax filing. Investments through the EIS scheme are also favourable in the long term as Capital Gains Tax does not apply to shares and equity attained through this investment opportunity.