Some changes may be on the cards for the Enterprise Investment Scheme, including speculation that the relief available for investors through the scheme may be restricted. Investments in AIM-listed groups will often benefit from EIS relief where the necessary conditions are met, and this acts as a significant incentive to wealthy investors who might wish to invest in this market; therefore, the withdrawal or reduction of relief could therefore make it harder for smaller AIM-listed groups to raise the finance necessary for growth and job creation.

Another area that may affect AIM companies in particular is a change to corporation tax. For AIM-listed groups, the costs and resource involved with tax compliance represents a significant burden.

“Until recently many AIM-listed groups had a dedicated HMRC relationship manager”, said Kanczula, “but the withdrawal of this facility for all but the largest groups has increased compliance costs for many companies. The reintroduction of an interface between businesses and HMRC would be greatly welcomed by AIM-listed groups and their advisors”.

The Apprenticeship Levy has also had a significant impact on larger AIM-listed groups. Evidence suggests that many companies in the AIM market are unable to access the funds necessary to train apprentices and so the Levy merely represents an additional tax burden.

“More flexibility around the structure of training carried out by apprentices would be welcomed as many groups are keen to take on apprentices but operate in industries that do not require the level of structured training currently necessary to qualify”, Kanczula said.