If you are looking to raise equity investment in your business, knowing about the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) Schemes are a must. These are HMRC approved schemes that allow individuals to invest in early stage or established businesses and obtain attractive tax breaks.
The headline details are:
SEIS
– Businesses up to 2 years old
– Company can raise up to £150k
– Individual can invest up to £100k and receive 50% of their investment as anoffset to their personal tax bill
– If shares held for 3 years no capital gains tax
– If the company failed the investor would receive loss relief that could lead up to
up 72.5% of total investment being recouped
EIS
– Established business up to 7 years old
– Company can raise up to £5m per annum
– Individual can invest up to £1m per annum
– Same benefits as SEIS apart from initial tax relief is 30% not 50%
– If shares held for 3 years no capital gains tax
We have advised on more than 70 of these schemes now and can produce the package that needs to go to HMRC for what is called an Advanced Assurance Certificate, which is HMRC confirming in writing that your proposals and eligibility are okay, and you can then show the certificate to potential investors.
If you wish to find out more about the scheme or would like to discuss us obtaining you an Advanced Assurance Certificate, please contact us