Brexit talks keep filling agendas across EU and UK. This time around is the UK government who has given another step into varnish a no-deal outcome of the negotiations with the latest changes in the Autumn Budget about focusing in EIS and SEIS plans.
In fact, these changes, announced in the mentioned Autumn Budget and coming into effect from 2020, will focus EIS and SEIS on knowledge intensive companies, a sector that will be a key part of the economy in future. It’s clear that these schemes will play a significant part in the Government’s post-Brexit plans. It will be necessary to continue to promote the benefits of schemes such as EIS and SEIS to ensure that the nation’s entrepreneurial economy is suitably Brexit-proof.
Director General of the Enterprise Investment Scheme Association, Mark Brownridge, is of the opinion that: ‘The Government has a responsibility to ensure that investment schemes, such as the Enterprise Investment Scheme (EIS), are better promoted in order to ensure that domestic investment continues in a time in which many investors may be looking overseas instead. Keeping UK SMEs well funded in post-Brexit Britain will be key for the entrepreneurial economy that makes up 99% of UK businesses.
With uncertainty in UK markets stemming from the risk of a no-deal Brexit it’s more important than ever that investors in the UK are using their capital to help domestic businesses and the UK economy to grow in the coming years in order to deliver on the promise of coming out of the EU in a stronger position than before.’
These two schemes aim to help tax reliefs for investors and companies. On one hand, the Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance by offering tax relief on new shares in those companies that qualify. For the investor, it’s a tax efficient way to invest in small companies.
The EIS, however, is aimed at the wealthier, sophisticated investors. People can invest up to £1,000,000 in any tax year and receive 30% tax relief. However, they are locked into the scheme for a minimum of three years. EIS seeks to encourage investment into unlisted companies, just like the ones featured here.
Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.