Investors in start-up companies received a boost from the chancellor yesterday when it was announced that from April tax relief on up to £500,000 could be obtained from enterprise investment schemes (EISs).

These schemes are intended to encourage investment in new UK business enterprises, offering tax incentives in return for the increased investor risks. The government says that more than £6.1bn has already been raised and invested in over 14,000 unquoted trading companies through EIS schemes.