Small and Medium Enterprises (SMEs) are key to British innovation and growth. Since 2012, SMEs have turned over £430 billion in London alone and currently populate 99.8% of the city’s private business sector. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are two of the UK’s leading tax-efficient investment programmes encouraging private investment into SMEs. IW Capital utilises these schemes to facilitate deal-flow between our investors and some of the UK’s most viable SMEs that we have identified through our expert due diligence and market experience.
Following the Summer Budget and the subsequent Finance Bill in July 2015, EIS reforms were proposed in a bid to improve access to capital for investee companies and knowledge-intensive businesses. The changes made to EIS and SEIS products, in relation to criteria for business eligibility, require expert guidance to ensure our clients’ investments fulfil their maximum potential. Our latest report, The Future of EIS, breaks down the key areas that may affect you as an investor.
The key proposals outlined in the Finance Bill align UK legislation with new regulations introduced by the European Union (EU). As discussed in our report, these reforms cap the amount of capital that can be invested through EIS into individual companies, and increase the age and experience requirements for companies that wish to qualify for EIS. However, with specialist support and thorough due diligence, each of these changes can be successfully navigated and effectively managed.
These legislative changes reinforce the importance of utilising tax efficiency products to support the investor community while stimulating innovation and growth in the UK’s private sector. To find out more about the benefits of EIS investments, download The Future of EIS, here.
Alternatively, to speak to a member of our team, call us on 0207 015 2250 or email info@iwcapital.co.uk.