EIS and SEIS are schemes designed to help small or medium sized businesses by attracting tax efficient investment.
The EIS is designed to help smaller, higher-risk companies raise finance by offering start-up tax breaks on new shares in those companies that qualify.
For the investor, it’s a tax efficient way to invest in small companies. It is aimed at wealthier, sophisticated investors. People can invest up to £1m in any tax year and receive 30 per cent tax relief.
However, they are locked into the scheme for a minimum of three years. EIS seeks to encourage investment into unlisted companies.
The SEIS is an incredibly generous derivative of the 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 per cent 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.
We can help businesses to: