- 10 October 2017
- IP and Commercial
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are schemes run by the government offering generous tax breaks to encourage SME growth and investment in such companies.
Needless to say, investing in smaller, unknown companies can generally be a riskier move than investing in household names, such as a social media giant or an international bank. Add this to the fact that selling off shares in a relatively unknown company a few years down the line is likely to make the decision to invest in such companies less appealing. Unless there might be some tax advantages, that is!
Needless to say, investing in smaller, unknown companies can generally be a riskier move than investing in household names, such as a social media giant or an international bank
Provided certain criteria are met, the EIS helps SMEs raise finance by offering tax relief to those who invest in it by acquiring new shares. Investors can invest up to £1m in a tax year and receive 30% tax relief on their income tax liability.
By the same token, SEIS encourages seed investment in even smaller companies that need the kick start, and it provides even more generous tax reliefs than EIS. Under SEIS, Investors can obtain a tax break of 50% of an investment up to £100,000 and a capital gains exemption for any gains made on the shares when selling them on in the future.
Please note that the contents of this article are intended for guidance only. Specialist advice should be sought for your specific circumstances.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website
Read, listen and watch our latest insights
- 22 February 2024
Time to take the heat off menopausal women
On 22 February 2024, the EHRC released guidance and resources for employers designed to help employers understand their legal obligations in relation to supporting workers experiencing menopausal symptoms.
- 22 February 2024
Talking Employment Law: What to do if you’re at risk of redundancy
In this podcast, Harry Berryman and Rebecca Dowle, members of the employment team, will talk through the steps that need to be taken for a redundancy to be fair and the range of criteria that can be used when determining which employees will be made redundant.
- 21 February 2024
FAQs Partner Visa UK
Discover the UK Spouse Visa: eligibility, finances, relationship criteria, and the latest updates in 2024 for a successful application.
- 19 February 2024
- Privacy and Data Protection
The role of Data Protection Officers in ensuring compliance
How many of us receive marketing calls for products and services we did not sign up for?
- 12 February 2024
The World of Work in 2024- What Can HR Expect?
In many senses, 2024 is unlikely to be a year with radical ruptures from those that have gone before it. The significance of 2024 though, is that it is likely to build upon those megatrends impacting the world of work, which have been emerging for some time now and are only likely to strengthen as we move on in time.