Investor’s Guide to the Enterprise Investment Scheme and Seed Enterprise Investment Scheme

Crowd for Angel presents Investor's Guide to the Enterprise Investment Scheme & Seed Enterprise Investment Scheme

Crowd for Angels presents the Investor guide to the Enterprise Investment Scheme and Seed Enterprise Investment Scheme. The guide explains who Crowd for Angels are, the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), their main benefits and how one can claim each tax relief. Read the Investor’s Guide below.

The Enterprise Investment Scheme, launched by the government in 1994, is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.

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Since the EIS began, thousands of small UK companies have used the government boon to raise growth capital for their business. According to HMRC statistics, in the 2017-18 tax year, 3,920 companies raised a total of £1.93 billion of funds under EIS. Since launch, that took the total number of companies to 29,770 and funds invested to more than £20 billion.

To give a broad overview, EIS offers investors in qualifying companies a range of generous tax benefits, including income tax relief, loss relief and exemption from capital gains tax. To encourage long-term investment, the shares must be held onto for minimum length of time, typically three years, before tax relief can be claimed.

The success of EIS led to the government launching the Seed Enterprise Investment Scheme (SEIS) in 2012. SEIS is intended to recognise the specific difficulties which very early-stage companies face in attracting investments, by offering tax reliefs at a higher rate than that offered by EIS. Qualifying companies receive a maximum of £150,000 through SEIS investments.

In 2017/18 2,320 companies raised a total of £189 million of funds under the SEIS scheme, compared to 2,425 raising £187 million the year before. Since launch, 12,900 companies have received investment and over £1 billion of funds have been raised.

Crowd for Angels is an FCA regulated crowdfunding platform that funds companies through the issue of shares, bonds and digitalised assets for investors. Our investment opportunities offer tax-efficient returns by utilising SEIS/EIS tax relief for share investments. Check current investment opportunities here: https://crowdforangels.com/pitches/open-investments

Risk Warning

Investing in small public listed or private companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Investing in debt pitches through Crowd for Angels (UK) Limited involves lending to companies and therefore your capital is at risk and interest payments are not guaranteed if the borrower defaults. Crowd for Angels is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own Investment Decisions. You will only be able to invest via Crowd for Angels once you are authorised. Please click here to read the full Risk Warning.

This page has been approved as a Financial Promotion by Crowd for Angels (UK) Limited (Company number: 03064807) , which is authorised and regulated by the Financial Conduct Authority (Reference number: 176508). Investments can only be made on the basis of information provided in the Pitches by the Investee Companies concerned. Crowd for Angels takes no responsibility for this Information or for any recommendations or opinions made by the Investee Companies.

Pitches may contain forward looking statements and financial forecasts or projections. Forecasts are not a reliable indicator of future performance. Crowd For Angels makes no judgement or opinion of the likelihood of targets being achieved. Investments made in companies listed on the Crowd For Angels platform are not covered by the Financial Services Compensation Scheme (FSCS).

The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.