As investment in early-stage companies generally carries a higher degree of risk, the UK government offers a range of tax incentives to encourage investment in these businesses, which may otherwise struggle to raise finance.
Our tax specialists can help you make informed decisions on:
Choice of vehicle for investment, e.g.personal investment or investment via a company or partnership
EIS and SEIS can be particularly attractive to investors, with tax benefits including income tax relief equal to 30% (EIS) or 50% (SEIS) of investments up to £1,000,000 and the facility to defer paying capital gains tax on all or part of a chargeable gain by investing the proceeds in qualifying shares.
We have extensive experience of helping companies to raise funds under EIS and SEIS, including liaising with HMRC to obtain advance assurance that the business will qualify and assisting with the ongoing reporting requirements.
We are also able to advise individual investors on their eligibility to claim tax relief under EIS and SEIS.