“A generous, tax-efficient investment scheme for business to raise finance from individual investors.”
To encourage more investments into early-stage companies, the UK Government runs two schemes, SEIS and EIS, offering investors generous tax breaks. The schemes effectively reduce the cost of investing and, if the investment is successful, enhance the returns.
EIS – Enterprise Investment Scheme
The Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance by offering tax relief on new shares in companies that qualify. For the investor, it’s a tax-efficient way to invest in small companies.
The EIS is aimed at the wealthy, sophisticated investor. People can invest up to £1,000,000 in any tax year and receive 30% tax relief. However, they are locked into the scheme for a minimum of three years. EIS seeks to encourage investment in unlisted companies, just like those featured here.
SEIS – Seed Enterprise Investment Scheme
SEIS is an incredibly generous derivative of the Enterprise Investment Scheme (EIS), and was introduced in April 2012. Its aim is to encourage seed investment in early-stage companies. Investors, including directors, can receive initial tax relief of 50% on investments up to £100,000 and Capital Gains Tax (CGT) exemption for any gains on the SEIS shares.
The maximum amount to be raised for each company is £150,000.
Our clients range from companies seeking to raise funds from a small group of identified investors to those raising funds by means of a general offering of shares to the public. Thus, if you are looking to raise finance using either EIS or SEIS, we can help you prepare all the documents you need in order to apply for such investment.
