EIS / SEIS Shares

Owners Small and Medium sized Enterprises - SMEs may at some point look to further investment in the business to enable the next stage of growth. In many cases, this will involve approaching banks and other institutions for loans / mortgages to fund the cost of the planned growth.

However, there are occasions where owners of SME's will approach individuals and other organisations for direct investment into the business via the subscription of new shares. In respect of attracting individuals it may be useful to setup an Enterprise Investment Scheme [EIS] or a Seed Enterprise Investment Scheme [SEIS].

The EIS incentive has been around for several years and have enabled SME's to attract new investments where otherwise they would have struggled. The SEIS is a new scheme launched in 2012 and is aimed at the very small companies. Both schemes are attractive to investors as the benefits received in addition to a stake in the SME are:

  • Income tax relief on of the cost of the shares
  • Capital gains tax exemptions
  • Capital gains tax deferral on gains realised before or after the subscription of the EIS shares

We have implemented these schemes on behalf of our clients and if you would like to find out more on whether this is available to your business, give us a call today.