We Guide the Way.
Mark Brooker - Finance Director
- EIS offers a total tax saving and deferral rate of nearly 60% of the investment. Downside risk for 50% tax payers capped at 35% of the investment amount.
- The annual investment per individual is limited to £1m per person.
- Where shares are issued after the 6th of April 2012, companies can raise up to £5m per year through EIS.
- Special rules allow licensing of intellectual property. So EIS is available for most projects where exploitation will occur in the film industry (pre-development to production and distribution).
SEIS is designed to complement EIS. SEIS offers a smaller, similar scheme to EIS. Particularly useful for early or late stage development.
- Income tax relief of 50% of the investment (for individuals who invest in qualifying companies).
- Limited to an annual investment of £100,000 per person; cumulative limit of £150,000 over 3-year period for the qualifying company (SPV).
- Gains arising on the disposal of other assets in the previous year will be tax free if invested back into SEIS in that year.
- Company’s gross assets must not exceed £200,000, with less than 25 employees, at the point of investment from the SEIS vehicle.
- SEIS perfect for early stage development and origination of Intellectual Property as SEIS trading company does not need to currently be trading in order to receive investment.
- The EIS restrictions are applicable to SEIS investments in the same way (no exit/guarantee arrangements etc).