A rise over the course of the 2017-18 tax year has seen funding for the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) tax reliefs pass the £2.1billion mark.
The EIS scheme saw the larger increase in approved funding, with a rise of £28million in funds raised.
Meanwhile, SEIS approved funding was up by approximately £2 million over the twelve month period, despite a fall in the number of companies receiving investment funding.
The EIS scheme allows investors to claim relief on income tax of 30 per cent on investments of £1million or below in high-risk start-ups. Meanwhile, they can also invest as much as £2million in “knowledge-intensive companies”.
The figures follow a crackdown on some lower-risk investments, which most recently saw a “risk-to-capital” test introduced in the Finance Act 2018.
If your business would benefit from investment funding or you an investor and would like to know more about the various tax reliefs available, please contact us.