87% of investors unaware of small business tax incentives
Majority of those who invest in stocks and shares haven’t heard of government schemes such as EIS and SEIS, new study reports
87% of people who invest in stocks and shares are unaware of government-backed tax incentives such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS), according to new research by YouGov for Crowdcube.
Conducted using responses from 2,341 adults, the study found that of those who invested in small firms over the last two years, 28% had used stockbrokers, 28% had invested through banks, 14% through IFAs, and 3% had invested through crowdfunding platforms.
Established in 1994, EIS looks to encourage investments in companies not listed on the stock exchange providing an initial 30% tax relief on investments of up to £1m.
Launched more recently in April 2012, SEIS is targeted at helping businesses at seed-stage with investors offered 50% income tax relief and, as with EIS, there is no capital gains tax to pay on profits and no inheritance tax.
Crowdcube co-founder Luke Lang said the findings show “more needs to be done to make people aware of potential tax relief on their investments to boost British small businesses”.