planD’s Post

🚀 Great news for UK start-ups and investors! 🚀 The UK Treasury has extended tax relief schemes, the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT), until April 2035. These schemes offer fantastic incentives, like 30% income tax relief and capital gains tax exemption, to encourage investment in young and innovative companies. With over £2.9 billion raised in 2022-23, this extension will provide long-term confidence for investors, boost economic growth, create jobs, and support the next wave of UK entrepreneurs. 🌱 #Startups #Investment #Entrepreneurship #EconomicGrowth #UKBusiness

# Great News for UK Investors and Startups! 🎉 The Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) just got a major boost! The government has extended the sunset clause by 10 years, from 2025 to 2035. ## Why This Matters: 1. 🚀 **Continued Support for Startups**: This extension ensures ongoing investment in innovative UK startups, fueling economic growth and job creation. 2. 💼 **Investor Benefits**: EIS and VCT offer attractive tax reliefs, including income tax relief and capital gains tax exemptions. 3. 🏘️ **Inheritance Tax Planning**: Business Relief (BR) associated with these schemes can be a powerful tool for mitigating Inheritance Tax. 4. 🇬🇧 **Boosting the UK Economy**: By encouraging investment in high-growth potential companies, we're helping to build a stronger, more dynamic British economy. This extension provides a decade of certainty for investors and entrepreneurs alike. Whether you're looking to grow your wealth, support exciting new businesses, or plan for the future, EIS and VCT continue to offer compelling opportunities. ## Important Risk Warning ⚠️ Investments in EIS and VCT schemes carry risks, including the potential loss of capital. The value of investments can go down as well as up, and investors may not get back the full amount invested. Tax treatment depends on individual circumstances and may be subject to change in the future. Always seek professional financial advice before making investment decisions. Have you considered EIS or VCT investments? Let's discuss how these schemes might fit into your investment strategy! ______________________________________   Hi I'm Ernest 💫   I'm a financial planner with a burning desire to build connections and assist people achieve their business and personal finance goals!   UK based 🗺  and ready to help with:   ✅ Pensions (including SIPP/SSAS) ✅ Insurance ✅ Mortgages ✅ Inheritance Tax Planning ✅ Tax mitigation ✅ Business planning   and more...   Why not reach out today for a free initial consultation?   #wealthmanagement #financialplanning #financialadvice #investments #goals #FinancialPlanning #FinancialLiteracy #UKFinance #UKInvestment #EIS #VCT #StartupInvestment #TaxPlanning #InheritanceTaxPlanning

Lots of discussion at the moment about the detail around the chancellor's plan for faster growth in the UK. One thing the government has done already is to extend the EIS/SEIS scheme until 2035. September marks the 30th anniversary of the Enterprise Investment Scheme (EIS). Since 1994, the EIS has played a pivotal role in fueling innovation, job creation, and economic growth across the UK. With over £32 billion of 'risk capital' invested in 56,000+ startups. Crowdcube has been a small part of this journey in the last 10 years and continues to help founders raise capital while offering attractive tax breaks to UK tax payers. 1,300+ EIS-eligible investment rounds have been completed on Crowdcube.  In total, we have raised over £600m for EIS-eligible businesses. Which has enabled 260,000+ investors the opportunity to claim EIS tax relief. With the recent introduction of a similar scheme in France, thanks in part to the efforts of Paul Midy, it got me thinking if it will take more or less than 30 years for investors to deploy more than 30b euros in French businesses? 

The best thing the UK Govt could do to create UK Silicon Valley is to give Tax Breaks to quick win startups , instead of VCs who odds show are more likely to back a failure. Companies like our's that get to profit quickly, have an innovative product and don't need VC money end up at a disadvantage. We're creating jobs and wealth just like the 1% of VC backed companies that do eventually make it. Only we get no govt help. If I did take VC money, the VC's would be handed cash back from the government in the form of Tax Saving schemes like SEIS and EIS. As a profit making startup that has done all the right things, such schemes are not available to us. Instead UK Plc gives the incentives to VCs. Yet most VC backed companies fail. So why not give a Tax Break to those Startups that are proving to perform better than the 1% of VC companies? Maybe then we'll see more UK unicorns. And finally UK Silicon Valley. #Tax #VC #SEIS #EIS #Treasury

As a founder, it’s useful to understand the options available to you when raising equity investment in the UK. Two popular schemes for UK startups are EIS (Enterprise Investment Scheme) and SEIS (Seed Enterprise Investment Scheme). So here’s a breakdown of the key differences to help you choose the right fit for your business: 1️⃣ Company Stage SEIS: Designed for very early-stage startups (under 3 years of trading). EIS: For more established businesses, up to 7 years of trading. 2️⃣ Investment Limits SEIS: You can raise up to £250,000 total. EIS: You can raise up to £5 million per year, with a total of £12 million (£20 million for knowledge-intensive companies). 3️⃣ Company Size SEIS: Maximum of 25 employees and gross assets under £350,000. EIS: Maximum of 250 employees (500 for knowledge-intensive companies) and gross assets under £15 million. 4️⃣ Tax Relief for Investors SEIS: 50% income tax relief on investments up to £200,000 per tax year. EIS: 30% income tax relief on investments up to £1 million per tax year (£2 million for knowledge-intensive companies). 5️⃣ Investor Types SEIS: Individual investors only. EIS: Accepts both individual and corporate investors (corporate investors do not receive tax relief). 6️⃣ Fund Usage Timeframe SEIS: Funds must be spent within 3 years. EIS: Funds must be spent within 2 years. 7️⃣ Capital Gains Tax Relief SEIS: Up to 50% CGT reinvestment relief. EIS: CGT deferral relief. If your startup is in its early stages, SEIS is a good fit. If you're further along and scaling, EIS will allow you to access larger funding amounts and more flexibility. #Startups #Investment #EIS #SEIS #VentureCapital #Funding #BusinessGrowth #TaxRelief #Entrepreneurship #BusinessFunding

Following last week’s UK Budget which included £40bn of tax rises, Joanna Jensen entrepreneur and chair of the Enterprise Investment Scheme Association (EISA) talks through what the measures mean for the UK’s entrepreneurs "Since the double whammy of COVID and Brexit, startups and scale ups have been experiencing belt tightening; liquidity is scarce, the cost of goods has risen enormously and international export legislation is nothing short of a headache. Many small firms are facing chronic staffing issues, from the long-term sick, a severe lack of workers in the hospitality and services industries, and many now reluctant to return to the office. A new government talking about growth was a much-needed boost – until the whispers started circling about their intention to remove every lever in the toolbox used to support business growth. The constant finger pointing at the previous Government feels like an intentional distraction from the fact that they are a collective of business virgins" 📑 Read the full article 🔗https://ow.ly/zHXr50U22AX What are your thoughts on the latest budget measures? How do you see them impacting your business? #startups #entrepreneurship #EIS #SMEs

Interesting article with some good suggestions that I wholeheartedly agree with. The piece includes a noteworthy quote that deserves more attention: "UK High Net Worth individuals have invested over £32bn in 56,000 companies during the tenure of the Seed Enterprise Investment Scheme and EIS, enabling our SMEs to flourish." This statistic underscores the significant impact of these investment schemes on the UK's entrepreneurial ecosystem. It's a testament to the power of targeted incentives in fostering innovation and economic growth

Over the last few months, many have asked me about our journey towards SEIS compliance. Here’s a brief overview of the Seed Enterprise Investment Scheme (SEIS) in the UK: ❗️What is SEIS?  -  SEIS is a government scheme to help early-stage companies raise funds by offering tax reliefs to investors. ❗️Investor Tax Benefits: - 50% Income Tax Relief on investments up to £100,000 per tax year. - CGT Exemption if shares are held for at least three years. - Loss Relief on disposed shares. - Reinvestment Relief for deferred CGT. ❗️Company Eligibility:  - UK-based, less than 2 years old. - Fewer than 25 employees. - Gross assets under £200,000. ⬇️ An infographic below with a worked example ⬇️ Our experience with SEIS was transformative, providing tax benefits for investors and vital funding for us when we needed it! If you have any further questions or need more details, feel free to reach out! 🚀 #SEIS #TaxEfficientInvesting #Startups #UKBusiness #Entrepreneurship #InvestmentOpportunities #SEISCompliance

BREAKING: What the new budget means for UK Startups & Entrepreneurs. There's been A LOT of noise in the startup community about the proposed tax reforms and how they will impact UK startups and entrepreneurs. Here's my understanding of what has actually been committed to: - Business Asset Disposal Relief: NOT being scrapped. However the current 10% rate (applied on first £1m) will increase to 14% next year, and possibly 18% the year after. For sales over £1m see the next point. - Capital Gains Tax: CGT paid on profits from selling shares to increase from up to 20% to up to 24%. - Carried Interest: CGT will rise from 28% to 32% on the performance fees that private equity fund managers make when assets are sold. From April 2026, carried interest will be taxed fully within the Income Tax framework. - EIS: Extended until 2035. - National Insurance: The threshold at which companies have to pay NI is reducing to £5k (from £9.1k), with the rate increasing from 13.8% to 15%. Overall this is MUCH better than everyone feared, so I imagine most founders / investors will be happy, but curious to hear what others think. Is it enough to still drive away entrepreneurs? Will it actually increase tax revenue or just stifle innovation? Let me know if I've missed anything. #budget #startups #uk

The debate over capital gains tax (CGT) in the UK is heating up as 500 entrepreneurs, including leaders from major tech firms, rally against a potential tax increase. Their message is clear: raising CGT could stifle innovation and threaten the UK’s status as a thriving startup hub. With proposed rates reaching up to 39%, there's a genuine fear that such changes could deter entrepreneurs from launching and investing in their ventures. However, it’s vital to consider the flip side. Critics argue that higher taxes could actually address fiscal challenges without detrimental effects on productivity. This discussion highlights the broader influence of the UK's £2 billion lobbying industry, where groups like The Entrepreneurs Network play a pivotal role in shaping policies. As the Autumn Budget looms, the question remains: can we foster a fair tax system while protecting the entrepreneurial spirit that drives economic growth? Let's keep this conversation going! #UKEntrepreneurship #CapitalGainsTax #Innovation