Ombudsman Sarah Tozzi stated the customer, Mrs B, was not given ‘suitable advice’ when making an investment in an Octopus Eureka Investment Scheme (OEIS) to obtain inheritance tax relief.

In 2010, Armstrong Watson Financial Planning advised Mrs B to invest £200,000 into an EIS and recommended a further investment of £40,000 a year later.

The EIS was recommended on the basis that it would provide inheritance tax (IHT) relief if held for two years by the date of death, with a further 20% income tax relief becoming available if the investment was held for at least three years.