Opportunities offered by the Enterprise Investment Scheme (EIS) and crowdfunding.
The EIS has been established to help companies attract investments from qualifying investors.
The scheme is particularly beneficial for smaller trading companies with a greater risk, as investors can take advantage of a range of tax reliefs. It offers benefits like:
– A deferral of EIS Capital Gains Tax for the life of the investment on the amount subscribed.
– 30 per cent EIS income tax relief on the amount subscribed, which can be up to a maximum investment of £1 million in the 2017/18 tax year and/or £1 million which is carried back to the 2016/17 tax year for a minimum of three years.
– 100 per cent inheritance tax relief after two years, so long as the investment is held at the time of death.
A £100,000 investment from a UK tax payer would receive a £30,000 tax rebate from HMRC. This assumes that the investment is in a qualifying company and the individual’s income tax liability has exceeded £30,000 in the previous tax year.
What is crowdfunding?
Businesses can use to raise money, awareness and support for a project. It allows companies — that had previously been turned down by High Street banks — to appeal directly to small investors to raise money in return for a share in the business.
Crowdfunding benefits include:
- You receive advocates who will support both a business and the idea, becoming part of the journey and making for appealing ambassadors when the project develops in the future.
- Additional funding can be unlocked, such as grants, if a charity or community group or investors, loans or a pre-cursor to an equity crowdfunding campaign of a business.
For more investment news and opportunities please call DevDosh Ltd today or visit www.devdosh.com