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. Click here to read our factsheet.
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EIS
EIS can be an excellent way to attract investment and 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
Not all companies qualify for EIS, but due to its competitive advantages, we recommend speaking with our tax team to determine if your business meets the eligibility criteria.
Read more in our factsheetSEIS
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%.