During their lifetimes, the reliefs available have changed somewhat, but the overall concept has been maintained. They intend to encourage investment into new businesses by incentivising the investor at the outset and making the inherent risk attractive to them (or more palatable!).

These incentives have seen many iterations. For example, up until the end of the 2004-05 tax year it was possible to defer gains into Venture Capital Trust (VCT) investments. Why was this changed?

Enterprise Investment Scheme (EIS) investment limits have moved. Between 1998 and 2004 only £150,000 of investments in a tax year was eligible for income tax relief, yet from 6 April 2012 it is possible to invest up to a £1million. This is great news for businesses and investors.

The rates of relief in that period have also moved from 20% before 6 April 2011 (with a minimum £500 investment) to the now heady heights of 30% for both the EIS and VCTs.

Additionally, there is the carry back facility for income tax relief, subject to limitations in the years concerned, which is also beneficial to the investor.

In the wake of the EIS and VCT schemes, Seed EIS (SEIS) has followed, with some attractive quirks for the potential investor but also some limitations which seem strange when compared to the old warhorses of EIS and VCT.

A maximum annual investment in SEIS of £100,000 is a pittance when compared with £1million into EIS but it comes with the very attractive 50% tax reduction.

Additionally there was the capital gains tax exemption for amounts reinvested in SEIS shares, up to the £100,000 limit of the investment in the first year. This has however, since been reduced to 50% of the invested gain.

All new governments like to play around with these schemes, to put their own twist on them and the question has to be whether the next government will also want to have a go?

It may be time to amalgamate the SEIS/EIS schemes, or at the very least increase the investment allowable under SEIS? Or will governments be loath to address this in the current climate when tax avoidance is such a hot topic?

The argument for such a change is strong. SEIS and EIS investments are high risk investments and the rewards can be great where companies do well, but the inherent risks are still there, and perhaps in order to grow the economy and encourage start-ups a more attractive approach should be considered.

Ultimately an investor's decision must be based on a sound knowledge and understanding of a business, but if there are attractive incentives available where someone is risking their own funds, surely this will help encourage people further.