In 2017 HMRC recently published the latest National Statistics on the number of companies raising funds under the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS). The full report makes for interesting reading, however, we have summarised the main points raised:
Enterprise Investment Scheme
- Since the EIS was launched in 1993-94, 24,620 individual companies have received investment through the scheme and almost £14.2 billion of funds have been raised.
- Data for 2014-15 shows that 3,265 companies raised a total of £1.81 billion of funds under the EIS scheme. This represented the highest amount of funds raised since the scheme was launched. In 2013-14, 2,840 companies raised £1.59 billion of funds.
- Data for 2014-15 shows that the 1,660 companies raising funds for the first time under the scheme raised a total of £1.02 billion compared with 1,405 first time companies raising £897 million in 2013-14.
- In 2014-15, companies from the Business Services sector accounted for over £600 million of investment. This comprised one-third of all EIS investment. The hi-tech and energy & water supply sectors also garnered significant investment.
- London and the South East continued to account for the largest proportion of investment with companies in these regions receiving 65% of investment in 2014-15.
- The number of investors claiming Income Tax relief on Self Assessment forms under EIS increased from 28,830 in 2013-14 to 29,380 in 2014-15. The majority of these investors made a claim for tax relief in respect of an investment of less than £50,000.
Seed Enterprise Investment Scheme
- In 2014-15, 2,290 companies received investment through the SEIS and £175 million of funds were raised. This compares with 2,110 companies raising a total of £171 million under SEIS in 2013-14.
- The average investment per company under SEIS in 2014-15 was around £77,000.
- Over 1,800 of these companies were raising funds under SEIS for the first time in 2014-15, representing £152 million in investment.
- In 2014-15, companies from the Hi-tech and Business services sectors made up 62% of the amount of SEIS investment received.
- The largest proportion of funds raised through SEIS was raised by companies registered in London and the South East.
National Statistics also show that in 2014-15, 8,150 investors claimed Income Tax relief on Self-Assessment forms for SEIS, compared to 7,795 investors in 2013-14.