Equity Raising

Equity Raising

Raise funds for your small business through EIS and SEIS

If you’re looking to raise money for your business, the Seed Enterprise Investment Scheme – SEIS and the Enterprise Investment Scheme – EIS. These offer new and growing young businesses in the UK attractive vehicles for securing inward investment. They benefit both the investor and recipient – and they are backed by the Government.

SEIS is designed to help companies raise money when they are just beginning to trade, or companies that have been trading for less than two years. The EIS, on the other hand, can help early-stage companies raise funds in their first seven years, to help them grow their businesses, as they are able to give larger amounts of funding.

Businesses raising money under SEIS can receive a maximum of £150,000 through the scheme, offering private investors 50% upfront tax relief – hugely attractive although the amount of investment is relatively small. The businesses must have assets of no more than £200,000 and have fewer than 25 employees. The company must also be based in the UK, and HMRC requires proof of a company’s permanent establishment in the UK.

EIS is for those seeking funding of up to £5 million and gives investors 30% upfront tax relief. They must also have less than £15 million of assets and up to 250 employees and therefore is open to far more companies than SEIS.

The same qualifying factors on UK residency above apply. Companies cannot raise more than £5 million each year and more than £12 million in their lifetime, from the four venture capital schemes that currently exist. Individuals cannot invest more than £1 million each year.

Any gains from SEIS and EIS investment are 100% exempt from inheritance tax, capital gains tax and income tax. Remember, HMRC stresses that tax reliefs will be withheld or withdrawn from investors if companies do not follow the rules for at least three years after the investment is made.

Our service provides the support you need to get you EIS ready and the platform for crowdfunding your equity requirements.Our experience, diligence and best in class digital platform combine to help you achieve investment success.