At Key Business Consultants, we are highly experienced in dealing with SEIS and EIS schemes both for our corporate business clients and investors across many varied market sectors.
We do everything we can in assisting start-ups with the process of raising finance within the confines of what is acceptable to HMRC and continue helping them throughout the entire share issue process to ensure everything is done correctly. This typically includes advising on the optimal structure for your business, obtaining advanced assurance from HMRC and ensuring that your business carries out qualifying business activities. We have seen cases of companies that have made one small error in the process and jeopardised the entire investment.
We can also guide you to funds who help with the actual raising of finance and once this finance has been raised we can assist with checking that the funds are spent on a qualifying activity within the necessary timeframe and confirm that everything is done in compliance with the rules. The importance of advance planning to raise finance cannot be understated. We can also advise on the new ‘risk-to-capital’ condition that was introduced at the start of the new tax year.
Another important area for Key Business Consultants is advising investors of suitable SEIS and EIS investment opportunities and the tax benefits available. There are a number of important criteria that must be met for an investment to qualify for all the available tax reliefs.
For example, the shares issued to investors must be qualifying shares and must be held for at least three years. The investors cannot be employed by the issuing company before they invest but there are opportunities for certain paid directors to invest. There are also maximum shareholding limits that an investor can hold. If all these conditions are met investors can invest substantial amounts of money with Income Tax reliefs.
The investment limits for the SEIS are much smaller than for the EIS and this is reflected with the higher Income Tax reliefs offered for investing in very early stage start-ups. However, no investments in either of these schemes should be undertaken without proper research and the full knowledge that any capital invested is at risk. Any potential investor must carefully examine the pros and cons of making any investment.
We look forward to hearing from any business owners who would like to know more about attracting investment under the SEIS or EIS scheme or from any investors looking for an opportunity for capital growth together with excellent tax benefits. Contact us today with any questions, we would be happy to assist you.