IW Capital’s focus over the past few years has remained firmly on originating, structuring and leading tax-efficient Enterprise Investment Scheme (EIS) investment opportunities to their network of investors. Utilising their experience and contacts to originate opportunities, they negotiate and professionally manage EIS investments which they believe will prove attractive to their network of client investors.
The EIS was introduced in 1994 to help smaller, higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new full-risk ordinary shares in those companies. Since the EIS was launched, almost 22,900 individual companies have received investment through the scheme and over £12.2 billion of funds have been raised.
The numbers of companies raising funds under EIS and the level of investment have shown similar trends since the scheme was introduced. The number of companies raising funds peaked at 3,315 in 2000-01, which reflects the dot com boom in 2000, but the amount raised in 2013-14 (£1,457 million) now surpasses the previous peak in the amount of funds raised (£1,065 million in 2000-01).
From 2000-01, there was a gradual decrease in the amount of investment up to 2004-05 when the amount of investment started increasing again. From 2007-08 to 2008-09, there was a sharp decrease in the amount of investment, most likely due to the economic recession and to additional eligibility restrictions for qualifying companies. The change in the Income Tax relief from 20% to 30% in 2011-12 and the introduction of the Feed in Tariffs initiative 2 from April 2010 (resulting in large amounts of investment into the renewable energy sector) both attracted investment into EIS.
Some of the advantages of investing in the EIS include with IW Capital include:
- No Capital Gains Tax
- 30% Tax Relief
- Possible Inheritance Tax Relief
- Loss Relief
- CGT Deferral Relief
Take a look at the IW Capital portfolio to view some existing EIS investments. For more detailed information on EIS opportunities with IW Capital, please contact info@iwcapital.co.uk
