New figures released by HM Treasury have shown that 2014/15 proved to be another record-breaking year for the Enterprise Investment Scheme (EIS). Over the course of the last tax year, nearly £1.7 billion was invested through EIS into eligible UK businesses – a year-on-year increase of £90 million.
- Over 24,500 companies have received investment totalling £14 billion since the EIS was launched in 1993/94
- 3,130 companies successfully raised £1.66 billion of funds in 2014/15
- Companies raising funds for the first time received a total of £880 million, similar to the same amount raised in 2013/14
These updated figures demonstrate the positive sentiment investors and companies hold towards tax-efficient investment schemes like the EIS. In light of Spring Budget reforms to Capital Gains Tax and pensions, it is likely that use of the scheme continue to rise steadily in the current and future financial years.
This is supported by findings contained in our Taxpayer Sentiment Report. We found that 54% of UK taxpayers with an investment value over £40,000 are considering investment through the EIS this tax year, something that is fuelled by significant positivity towards Britain’s SMEs; 71% of investors we surveyed said they are confident in the growth capabilities of the UK’s small and medium-sized firms. The latest government figures illustrate that the EIS is likely to continue to play a fundamental role in supporting Britain entrepreneurship as it has done since its inception 23 years ago.
The team at IW Capital prides itself on being a leading manager of EIS investment opportunities. We are constantly evaluating eligible businesses and developing a portfolio of high-growth companies that are defining their respective industries.
Click here to find out more about our portfolio of companies.