Attracting Tax Efficient Investment

At James Cowper Kreston, we understand that attracting investment is crucial for business growth and expansion. Companies that can deliver tax incentives to potential investors put themselves in a stronger position to raise finance.

Our tax experts can help you understand the complexities of these investor reliefs and explain how to take full advantage of them. Two of the most popular investor reliefs are the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

EIS

EIS offers investors tax incentives that can significantly reduce their investment risk. These incentives include:

Income tax relief of 30% on investments
Capital gains tax deferral on gains that are reinvested in EIS-eligible companies
Capital gains tax exemption on disposals of EIS shares held for at least three years
Loss relief that can be offset against income tax or capital gains tax liabilities

EIS can be an excellent way to attract investment for businesses that are looking to grow and expand.

Not all companies are able to offer EIS but given the competitive advantages it can deliver we recommend you speak to our tax team to see if you can fit within the rules.

SEIS

SEIS is aimed at start-up businesses, generally available to companies with gross assets of less than £350,000 and with a trade less than three years old.

It is largely modelled on EIS but can be more flexible and the tax savings for investors can be higher. Directors can often qualify for SEIS so long as their shareholdings do not exceed 30%.

How we can help

Our tax advisers has extensive experience in advising both investors and companies on SEIS and EIS. We can help you navigate the complexities and ensure that you take maximum advantage of the incentives available. Our services include:

SEIS and EIS Eligibility - We can help you determine whether your company is eligible for SEIS and EIS and provide guidance on the criteria that need to be met to qualify for these schemes.
Structuring Investment - We can assist in structuring investment deals to ensure that they qualify for SEIS and EIS.
Advanced Assurance – HMRC offer a pre-investment checking facility which we can help you apply for.
Compliance - SEIS and EIS come with a range of compliance obligations. We can help ensure that your business complies with the necessary regulations, including filing the necessary HMRC paperwork and maintaining the required records.

Why Choose Us

Here at James Cowper Kreston, we understand the importance of attracting investment for business growth and expansion. Our tax advisers have the expertise and knowledge needed to guide you through the complexities of SEIS and EIS and ensure that you take full advantage of the tax incentives available. Contact us today to learn more about how we can help you attract the investment you need to help you maximise your potential.

Meet some of the Business Tax Team