Wednesday, 25 September 2013

SEIS/EIS Funding: How to ensure you are eligible for these funding initiatives

‘Seed Enterprise Investment Scheme’ (SEIS) and ‘Enterprise Investment Scheme’ (EIS) are a series of EU regulated initiatives aimed at incentivising investment into start-up ventures, through numerous tax breaks and other benefits.

On Tuesday 17th September, Sue Crawford and Adrian Jones of Wiggin LLP held a fascinating on SEIS/EIS financing initiatives. They explained the key aspects of both schemes, and highlighted basic requirements and key watch outs for any investor looking to use these types of funding. The pitfalls discussed were a particularly insightful aspect of the presentation with a large emphasis placed on share consideration and the requirement of full written documentation tracking cash payment of shares.  The investors’ ‘exit’ should also be tempered with caution; the start of the trade is considered as the day any shares are issued by the company.

As discussed by Sue and Adrian here are some of the important takeaways of both schemes; EIS provides investors with a 30% tax relief. Other key aspects of EIS include:
  • Income tax relief, if disposal at a loss
  • Maximum total income tax relief of 61.5% 
  • No Capital Gains Tax on disposal, roll over gains
  • Inheritance tax- after 2 years shares qualify as exempt business assets 
Equally some specific requirements for the EIS relief are outlined below:
  • Maximum of £2m per company each year and £1m per investor each year 
  • Company must have gross assets of not more than £15m and not more than 250 employees 
  • Generally not available to employees, directors or their connected persons (except business angels)
SEIS relief can be even more attractive financially than EIS. It offers Income tax relief at 50%:
  • Income tax relief, if disposal at loss
  • Maximum total income tax relief of 72.5%
  • No Capital Gains Tax on disposal, roll over gains
  • Inheritance Tax- after 2 years shares qualify as exempt business assets 
However like EIS relief there are some precise requirements that the investor must adhere to in order to be eligible for SEIS relief, these are summarised below:
  • Maximum of £150,000 per company and £100,000 each year per investor
  • Company must have gross assets of not more than £200,000 and not more than 25 employees
  • Available to directors (and their connected persons) 
In summary the key message of the evening was to take care when it comes to any application for EIS/SEIS relief. All requirements should be satisfied and investors are advised to provide more than the minimum level of documentation, in order to ensure that they comply with the regulations set by HMRC. Investors are also encouraged to seek advice if they have any queries regarding the schemes, and guidance in obtaining relief.

22 comments:

  1. Really impressive post. I read it whole and going to share it with my social circules. I enjoyed your article and planning to rewrite it on my own blog.
    mahjong | agario | minecraft | kizi | hulk games | mickey mouse games | sniper games

    ReplyDelete
  2. I just want to say thanks for your wonderful post, it is contain a lot of knowledge and information that i needed right now. You really help me out my friend, thanks!
    halloween| animal jam| happy wheels| cool math| 8 ball pool| sudoku az| yoob games| happy wheels| hanger| tetris| friv4school| color sudoku| kumba karate
    happy wheels| happy wheels hacked| shopping cart hero 2| whack a craft| bob the robber 2| hanger

    ReplyDelete
  3. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    http://downloadmyfileshere.com

    ReplyDelete
  4. That is really nice to hear. thank you for the update and good luck.
    http://bestdownloadablefreeware.ru
    http://downloadtobehappy.net

    ReplyDelete
  5. WP SMS Marketing is a fully integrated plugin to enhanced marketing purpose; WP SMS marketing application has rich features like Bulk SMS ...

    ReplyDelete
  6. All the best blogs that is very useful for keeping me share the ideas
    of the future as well this is really what I was looking for, and I am
    very happy to come here. Thank you very much
    earn to die play
    earn to die
    earn to die 3
    Hi! I’ve been reading your blog for a while now and finally got the
    earn to die 4
    courage to go ahead and give youu a shout out from
    earn to die 6
    Austin Texas! Just wanted to tell
    earn to die 5
    you keep up the fantastic work!my weblog
    age of war
    Hi! I’ve been reading your blog for a while now and finally got the
    happy wheels

    tank trouble 3

    ReplyDelete
  7. The blog or and best that is extremely useful to keep I can share the ideas
    of the future as this is really what I was looking for, I am very comfortable and pleased to come here. Thank you very much.
    earn to die 3| earn to die 6
    earn to die 5| happy wheels
    strike force heroes| slitherio
    earn to die 5| good game empire |tank trouble 2 | earn to die 3

    ReplyDelete
  8. This is one of the cult game now, a lot of people enjoy playing them . Also you can refer to the game :
    gold mine strike | pokemon go 2
    The game controls are shown just under . Movement mechanisms primarily include acceleration and tilting controls.
    stickman games | stick war 2 | animal jam 2

    ReplyDelete
  9. Your site is truly intriguing and motivation to numerous. I'll looking forward for a greater amount of your posts. Keep it up!
    Jogos Friv |
    Jeux de friv | friv100/Juegos Friv/Friv 100 Games
    agar.io

    ReplyDelete
  10. Gaming world where everyone entertained with games like Friv 2 games unblocked or Friv3 play unblocked or Yoob 100 unblocked games . The adventure racing game as Car Racing Games or game that a lot of people like the Super Mario Unblocked or Donkey Kong Unblocked is also very attractive. Have fun!

    ReplyDelete
  11. Troll Face Quest Video Games. Play. Troll Face Quest Video Games · Y10 City Heroes. the best free online Twizl games, juegos Twizl, jogos Twizlfrom the top game developers all over the world. Zoxy is the best entertainment site with free games.

    ReplyDelete
  12. Best of friv 4 Games game series are waiting for you! Kizi 100 Games is a great place to play free online juegos kizi game, sport, girl, including puzzle, boy and more juegos de kizi 100 game! Enjoy and play Kizi!

    ReplyDelete
  13. I liked it so much and very interesting, too! Thanks for sharing the experience.
    Wonderful post, really great tips and advice.
    friv 3
    friv 4 school
    kizi 2

    ReplyDelete

What are your thoughts?