The Enterprise Investment Scheme (EIS) is a UK government initiative aimed at encouraging investment into small and growing businesses.
Launched in 1994, the scheme offers a range of tax benefits to investors who are willing to support entrepreneurial ventures, making it an attractive option for those looking for tax-efficient ways to diversify their portfolio.
How does the EIS work?
Under the EIS, investors can invest up to £1 million per tax year in eligible companies, and receive a range of tax benefits in return.
These include income tax relief of up to 30%, capital gains tax relief, and inheritance tax relief.
Investors can also defer capital gains tax on any gains they make on other investments by reinvesting the proceeds in EIS-eligible companies.
For businesses, the EIS provides an attractive source of funding, as it allows them to raise up to £5 million per year in total, with a maximum of £12 million over their lifetime.
The scheme is particularly popular with small and growing businesses, including those in the film industry, which often struggle to secure funding from traditional sources such as banks and venture capitalists.
How does the EIS help businesses raise funds?
The EIS provides businesses with an opportunity to access a pool of potential investors who are actively looking for opportunities to invest in high-growth ventures.
By meeting the eligibility criteria and securing EIS status, businesses can attract investment from a wide range of individuals, including high net worth individuals, angel investors, and family offices.
For investors, the EIS provides an opportunity to support businesses that they believe have the potential to generate significant returns.
As well as offering tax benefits, the scheme also provides investors with the chance to invest in exciting and innovative businesses, and potentially benefit from their growth and success.
Conclusion on Enterprise Investment Scheme
The Enterprise Investment Scheme is a valuable initiative that offers benefits to both investors and businesses.
By providing tax-efficient ways for investors to support entrepreneurial ventures, and enabling small and growing businesses to access funding, the scheme plays an important role in supporting innovation, growth and job creation in the UK.
Whether you are an investor looking to diversify your portfolio, or a business owner seeking funding to scale your operations, the EIS could be the solution you have been looking for.
How Cubed Consultancy can help with Enterprise Investment Scheme
Cubed Consultancy is a specialist consultancy firm that provides a range of services to help businesses navigate the complex world of the Enterprise Investment Scheme (EIS).
Whether you are a business owner looking to secure EIS funding, or an investor looking to take advantage of the tax benefits offered by the scheme, Cubed Consultancy can provide you with the expert guidance and support you need.
Here are just a few of the ways that Cubed Consultancy can help with Enterprise Investment Scheme:
EIS eligibility assessment: Cubed Consultancy can help businesses assess their eligibility for EIS funding, and provide guidance on the steps they need to take to meet the eligibility criteria.
EIS compliance: The EIS has a complex set of rules and regulations that businesses need to comply with to secure funding. Cubed Consultancy can help businesses navigate these rules and ensure that they are fully compliant.
Investor outreach: Cubed Consultancy has a network of investors who are actively looking for opportunities to invest in high-growth businesses.
The firm can help businesses connect with these investors and secure the funding they need to grow.
Investor due diligence: Investors need to conduct due diligence before investing in a business, to ensure that it is a good fit for their portfolio. Cubed Consultancy can help businesses prepare for investor due diligence, and ensure that they are well-positioned to secure investment.
Tax planning: The EIS offers a range of tax benefits to investors, but these benefits are complex and can be difficult to navigate. Cubed Consultancy can provide expert guidance on tax planning, to help investors maximise the benefits of the scheme.
In summary, Cubed Consultancy can provide businesses and investors with the expert guidance and support they need to navigate the complex world of the EIS.
With a deep understanding of the scheme, and a track record of success in helping businesses secure funding and investors maximise