Start-up companies and smaller enterprises, which may be high-risk, often find it difficult to raise finance. In recognition of this and in an effort to encourage investment in these companies, the government has created two schemes of generous tax reliefs for business investors:
- The Enterprise Investment Scheme (“EIS”), which has been operating for several years and which has proven to be very successful, and more recently;
- The Seed Enterprise Investment Scheme (“SEIS”) which is new for 2012/13 and which offers even more generous tax reliefs for investments made in brand new “seed stage” companies.
Both SEIS and EIS are important tax reliefs for investors in early stage companies. You can find out more about EIS here and about SEIS here.
Browse InvestingZone's list of EIS and SEIS investments here.