If you have been trading for longer you could qualify for EIS. These schemes will make you much more attractive to investors and can give you the launch pad needed to take your business to the next level.
If you are looking to raise investment then this is an opportunity not to be missed.
SEIS provides investors with income tax relief of 50% against the size of their investment. For example, if the investor puts in £100,000 they would receive a £50,000 reduction in their income tax bill and would also not pay any capital gains tax when selling their shares.
EIS is very similar is SEIS but is for more established companies that have traded for up to seven years. As EIS companies are typically not startups they are seen as being less risky, so the tax relief is not as generous – investors receive 30% back on their investment, not 50%. However companies can raise up to £12m under EIS.
Recent figures showed SEIS investments totalled £175m across 2,260 businesses, approximately £77k per investment round. For EIS investments this averaged at £518k per round.
Furthermore, tech companies received 38% of all (S)EIS investments and the majority of those companies were based in London.
Once you complete our diagnostic we will give you a call to discuss your eligibility for the scheme and to go through the next steps.
Have a look at the process below to see which stage you’re currently at.
Take the test to see if investment is within your grasp.