Posted on 7th April, 2015

by Paul Moravek

EIS is now mainstream investing – and should stay that way

Its is truly great to see the recent data from HMRC that in 2014 a total of £1.4 billion was invested in companies who qualified under the government’s Enterprise Investment Scheme (EIS).

Under this scheme, investors can benefit from 30% tax relief, loss relief, absence of capital gains tax and inheritance tax.

The benefits of a successful investment to investors is clear, notwithstanding the risks of investing in early stage businesses. However, less is made of the benefits to the wider economy: EIS eligible funding grew 36% last year, with close to 1,900 companies raising equity capital using the scheme. As a result, countless jobs have been created and the impact on the wider economy is tangible and will be increasingly so.

As pointed out by Sherry Coutu, Luke Johnson and others in an open letter to all the main political parties last month, the importance of encouraging successful entrepreneurs to invest in the new generation of business leaders is fundamental to the lifeblood of the economy and irrespective of the political landscape following the general election next month

The full text of their letter can be read here, its worth a read

Let us know what you think of their view by adding a blog comment below.


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