Do you need to raise capital for your start-up or growing business? We all know this can be difficult without a proven track record. However, the government looks to make this easier by offering a range of tax reliefs to investors that invest in qualifying businesses.
- The Seed Enterprise Investment Scheme (SEIS) applies to the very smallest start-ups, giving investors up to 50% income tax relief on their investment.
- The Enterprise Investment Scheme (EIS) applies to larger businesses, giving a 30% rate of relief.
- For those who prefer to invest through a fund structure, Venture Capital Trusts can make investments in qualifying businesses, and give similar reliefs to the investors in those funds.
These reliefs help reduce the cost of investment (and hence the cost of risk of business failure) to the investor. In the longer term, their gains may be free of Capital Gains Tax.
We assist a significant number of start-ups and growing businesses to help show that they qualify for the schemes and increase their attractiveness to potential investors.
If you wish to consider whether your planned capital raise will qualify for investor tax incentives, please get in touch.