Raising finance and EIS & SEIS
Attracting the right investment for your growing company
Small businesses are an essential component of the economy and accounted for 99.3% of all private sector businesses in 2016.
The government wants to encourage investment in small businesses and offers tax relief on certain kinds of investment. While they are higher-risk investments, small companies also have a number of potential benefits:
- small companies can have greater growth potential than larger, more established companies
- many investors look to small companies as a source of growing dividends
- small companies have a higher rate of mergers and acquisitions, which could mean a large and quick rise in the value of investments.
So what schemes and tax treatments are available to small company investors?
Raising finance and Tax reliefs – EIS / SEIS
When you are looking to attract outside investors, qualifying under the EIS or SEIS schemes can make your business a much more attractive proposition.
Both the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are designed to help small, early-stage companies to raise equity finance by offering a range of tax reliefs to the individual investors who purchase new shares in those companies.
Income tax and Capital Gains Tax reliefs
The Enterprise Investment Scheme and the Seed Enterprise Investment Scheme can offer valuable Income tax and Capital Gains Tax reliefs to the potential investors but there are rules and conditions to be met.
That is where we can help, so please contact us our Cambridge Accountants for details.