Seed Enterprise Investment Scheme
In 2012 the Government introduced the Seed Enterprise Investment Scheme to help attract investors to such qualifying businesses. This is a more generous version of the EIS already in place for equity financing and is designed for businesses seeking to raise more modest investment capital. For both schemes there is an upper limit of 30% of the total share capital of the company that an individual investor (and their connected parties) can hold.
Key Contacts
Below you can see the current benefits available to investors:
The business offering the shares needs to have the following criteria:
One of the key advantages offered under the SEIS scheme is that Capital Gains being merely rolled over against SEIS qualifying shares are partially exempted from tax, rather than purely creating the deferral that would be obtained under EIS. 50% of the reinvested gain is exempt from CGT with the balance available for rollover
A company raising funds under SEIS can also raise funds under EIS once 70% of the funds raised under SEIS have been spent. Companies that have previously claimed EIS or received investment from a VCT are not eligible for SEIS.
As with all fund raising the complications are in the detail of matching the correct funds with the right venture, which is where the partners of Beavis Morgan have the experience to assist.
If you would like to find out more, please contact Steve Govey or your usual Beavis Morgan Partner.