All VCT, EIS, SEIS, and Business Relief qualifying investments are high risk and are not suitable for most clients. They are illiquid investments and Investors’ capital is at risk.

Case Studies

Regular contributions

Tim, a 45% taxpayer, is a member of a money purchase occupational pension scheme, with his company paying £70,000 per year. His total pension fund is well within the Lifetime Allowance. As his contributions have been in excess of £40,000 a year for some time, the Carry Forward rules do not help him.

The Pension Annual Allowance is £40,000 so this can be paid into his pension without a tax charge. However if the £30,000 excess is paid into his pension, this will incur a tax charge of 45%, or £13,500.

Tim instead chooses to pay the excess 30,000 into Kuber, as this will avoid the Annual Allowance Charge and start to build additional funds for his retirement in a tax efficient manner.


Katie has historically exchanged part of her bonus for additional pension contributions, however she is now caught by the Pension Annual Allowance as her annual contributions exceed £40,000. She therefore decides to invest her bonus into Kuber instead, as this will enable her to save for the future while also providing the initial income tax relief to spend in the short term


Neil is the owner and manager of his business. He has historically made large employer pension contributions but is now limited by the Pension Annual Allowance. He decides to declare a dividend instead and pay this into Kuber. For dividends in the 40% tax band he is liable for an effective 25% tax on the net dividend. However, as the dividend is paid into Kuber, he will benefit from up to 30% income tax relief which more than offsets the tax due. However, please remember that the tax treated as deducted at
source on dividends can’t be reclaimed.

Lifetime allowance

John has always taken his retirement planning seriously and has built a significant pension pot. Unfortunately, he is now going to be restricted by the Pension Lifetime Allowance. As he does not want to pay the 55% Lifetime Allowance tax charge on lump sums when he takes his benefits, he chooses to invest with Kuber instead of making further pension contributions. He also chooses to invest the initial income tax relief to further enhance his returns.


Paul wants to save for the future, but would like to access his investments before age 55. Therefore pensions are not suitable for his needs. Instead, he chooses to invest with Kuber as there are no age restrictions on when he can take the benefits.

Reducing income tax liability
David Capnel

David has a well-funded pension and is limited by the amount of pension contributions he can now make following the recent and planned reductions being introduced.

He’s saving a significant portion of his salary but also pays substantial income tax. He would like to adopt an investment strategy similar to pensions which will enable him to avoid income tax on some of his salary while making investments that have significant growth potential.

EIS is an excellent solution for David as it will allow him to invest in small growth orientated companies, reduce his tax liability and also benefit from tax free returns.

Deferring a Capital Gain
Steve Stenson

Steve works for mega bank as a senior tax adviser. Last year he sold a family plot of land and made a significant capital gain. He’s an additional rate tax payer and would like to make some tax efficient investments which will allow him to avoid paying capital gains tax which is due to be paid shortly.

Investing in a diversified portfolio of EIS will allow him to defer paying tax on the capital gain as well as benefiting from income tax relief on the investment. Together, the combination of tax incentives means that he’s able to get an upfront tax benefit of 58% of his investment, although when he sells the investment he will then be liable to pay the capital gains tax due in respect of the original gain.

The additional benefit of loss relief means that, should one of his investments prove disappointing, the worst case position for him would be a loss of 38.5% on an individual investment. Diversifying his portfolio means that the successes should make up for any disappointments and the loss relief helps this considerably.

Resident non domicile benefiting from tax free remittances
Boris Johansen

Boris is a wealthy businessman who has lived in the UK for the last 10 years although he’s originally from Switzerland. He pays significant UK income tax currently at 50% but because he is a non-UK domicile he keeps most of his investments offshore and pays the lump sum Remittance Basis Charge.

A significant portion of Boris’s investments are in cash deposits and he would like to use some of these funds to invest in smaller UK companies. By establishing a diversified portfolio of EIS he’s able to remit untaxed offshore assets without paying any tax on them providing they are invested within 45 days of being remitted to the UK. Kuber’s offshore multi-manager EIS scheme enables him to benefit from Business Investment Relief, income tax relief and tax free returns.

For Boris, the ability to diversify his portfolio was very important because he recognises that investing in small companies can be high risk and they sometimes do fail. The ability to claim loss relief on losses while benefiting from tax free gains on the successes makes a widely diversified portfolio of EIS particularly attractive. The maximum loss on EIS shares, taking in to account income tax relief at 30% and loss relief at 45%, is 38.5%.

Mitigating Inheritance tax
Helga Cash

Helga has recently sold her events management business and retired. She benefited from entrepreneurs relief on the sale of the business and was happy with a 10% CGT payment on profits. However, she’s concerned that her assets were previously exempt from IHT while they were tied up in the business but now are going to fall within her estate for IHT purposes. She paid significant income tax on her earnings before the sale of the business.

Investing in an EIS portfolio through Kuber will mean that Helga can benefit from the attractive income tax relief at 30% of the investment and, providing she buys the underlying shares within 3 years of selling her business, the EIS shares should qualify for “Replacement Property Relief” and be immediately outside her estate for IHT purposes.

In any event, EIS shares should qualify for “Business Property Relief” which means that they fall outside her estate for IHT purposes after 2 years.