Since its inception in 1994, the Enterprise Investment Scheme (EIS) investing has long been positioned as a powerful tax planning tool for high earners and entrepreneurs. Yet, in practice, many advisers and investors still treat EIS as a once-a-year, lump-sum decision; often driven by tax deadlines rather than portfolio construction. This mindset is worth challenging.

In an increasingly high tax environment, as advisers increasingly focus on outcomes-based investing, risk management and long-term client value, EIS should be evolving from a tactical tax solution into a strategic, regularly funded allocation; much like pensions, ISAs or general investment accounts. By committing smaller amounts on a monthly basis, investors can unlock the full potential of EIS as part of a strategic, diversified, tax-efficient portfolio.

Moving Beyond the Annual Lump Sum

Traditional EIS investing often involves deploying a large amount of capital in one go, typically close to the end of the tax year. While this can deliver immediate income tax relief, it also concentrates risk, both in terms of timing and exposure to a narrow cohort of companies.

A regular investment approach, with Deepbridge’s FlexEIS proposition allowing investors access to EIS from as little as £1,000 per month, allows investors to build an EIS allocation progressively.  This approach enables advisers to help clients steadily accumulate a tax-efficient investment pot over time rather than making a single, binary decision.

This approach aligns far more closely with how advisers already manage most client assets.

Building a Growing Tax Relief and CGT Buffer

Regular EIS investing also creates a rolling pool of income tax relief. With 30% relief available on qualifying investments, investors are continually building up a “tax relief reserve” rather than relying on one-off planning opportunities.

Importantly, EIS investments also qualify for capital gains tax (CGT) deferral relief. For investors with broader portfolios, where rebalancing, business exits or strong market performance can crystallise gains, this can create a valuable CGT buffer. Rather than reacting to gains after the fact, clients can proactively plan, knowing they have qualifying investments ready to absorb future CGT liabilities.

This turns EIS from a reactive tax tool into a forward-looking portfolio management asset.

The Power of Regular Venture Capital Investing

Successful venture capital investing is rarely about picking a single winner. It is about backing multiple innovative businesses, across stages and sectors, over time. By investing regularly, clients benefit from timing diversification, reducing the impact of market cycles, valuation swings or isolated “black swan” events, as well as the potentially more obvious diversification benefits.

Poor market conditions may affect individual cohorts of companies, but consistent deployment smooths entry points and increases exposure to the outliers that ultimately drive returns. Combined with diversification across assets and sectors, this represents what could be described as smarter diversification; a principle advisers already apply elsewhere, but too often overlook within EIS.

Why UK Early-Stage Tech and Life Sciences Matter

The UK’s early-stage technology and life sciences sectors remain among the most dynamic and globally competitive. From artificial intelligence and software to medtech, diagnostics and therapeutics, these businesses are tackling long-term structural challenges and benefiting from strong academic, research and innovation ecosystems.

Access to these sectors should not be occasional or opportunistic. They are shaping the future economy and deserve a consistent allocation within growth-focused portfolios, particularly when accessed through a tax-efficient wrapper like EIS.

Regular investing ensures clients are continually exposed to innovation as it happens, rather than trying to time entry points into rapidly evolving markets.

A More Modern Role for EIS

For advisers, the opportunity is clear. By reframing EIS as a regular, strategic allocation rather than an annual tax scramble, clients can benefit from smoother risk exposure, ongoing tax efficiency and a more robust approach to venture capital investing.

EIS does not need to be a leap of faith. Done properly, it can be a disciplined, repeatable process, one that complements wider portfolios and supports long-term client outcomes.

Andrew Aldridge is a Partner and Chief Operating Officer at Deepbridge Capital