Enterprise Investment Scheme (EIS)

EIS Funding for UK Small Businesses Hit a Record £1.5bn Last Year

EIS Funding for UK Small Businesses Hit a Record £1.5bn Last Year

Britain’s small businesses secured a staggering £1.5bn through the Enterprise Investment Scheme (EIS) from 2013 to 2014 – up 48% from the year before – a new report from Radius Equity has found. 2,770 businesses raised funding through the government’s tax relief scheme, the highest number in 15 years and a 12% increase from the 2012 to 2013 figure. The Seed Enterprise Investment Scheme (SEIS), which is focused on start-ups, also experienced an increase both in the number of numbers raising investment via the scheme and the investment raised. The number of start-ups using SEIS went up by 75% to 2,030 in 2013 to 2014 and the amount of finance raised increased from £86.1m to £166m. Radius Equity director, Gary Robins, commented: “EIS is becoming an increasingly valuable source of capital, esp... »

Tax Breaks Aim to Encourage Start-up Investment

Business angels investing in fast-growing small firms will benefit from a rise in tax relief, following the Government’s decision to expand the Enterprise Investment Scheme (EIS). The expansion to the scheme was first outlined in March’s Budget and needed approval by the European Commission. It will see a 10-percentage-point increase in income tax relief for EIS investments, while amount investors can invest per year under the EIS will be doubled to £1 million. The increase in the tax relief will be backdated to April 2011 and the new investor limits will apply from April 2012. The Government hopes the move will encourage greater investment in small firms with high growth potential, such as those in hi-tech or manufacturing sectors.  Chancellor George Osborne said: “We want to make t... »