A significant number of small businesses in the UK do not take full advantage of HMRC-approved...
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.