EIS and SEIS failing on awareness and eligibility fronts

The Enterprise Investment Scheme and Seed Enterprise Investment Scheme are failing to register on the radar of UK entrepreneurs, despite having been around since 1994 and 2012 respectively.

Entrepreneurs are not up to scratch with details, and also don’t know the basics.

A quarter of British entrepreneurs have not heard of the Enterprise Investment Scheme EIS, new figures show.   A recent study found that 25 per cent of business builders have not heard of the funding incentive, and 35 per cent are not aware of the EIS tax relief available to investors.

Further findings from the report shows that 40 per cent have not heard of the newer Seed Enterprise Investment Scheme,SEIS, and 50 per cent did not know how it worked.

EIS was first established in 1994 to encourage early-stage investors to provide angel capital to riskier business ventures. Through the funding mechanism, investors are able to gain income tax relief and capital gains tax aid.   SEIS was set up in 2012, and is targeting businesses at the earlier end of the spectrum. Both incentives have been promoted by the government and have received praise from around the world for encouraging start-up investments.   Of the 1,000 entrepreneurs questioned, many cited the fact that banks or financial advisers had not mentioned the schemes.    Of those who knew of the two schemes, but did not know how they worked, a number proclaimed that they thought EIS and SEIS were only available to passive investors.

via EIS and SEIS failing on awareness and eligibility fronts.