EIS and SEIS schemes encourage early stage investment

51% of investors with more than £1m of investments think tax efficient schemes are very important when considering early-stage investments

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49% of retail investors say tax efficient products such as Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) are more likely to encourage them to invest in early-stage companies, according to research from online investment platform SyndicateRoom.

Additionally, 51% of respondents with more than £1m of investments consider income and capital gains tax breaks as “very important” in relation to early-stage equity investments, in comparison with 30% of those with less than £100,000 and 34% of retail investors overall.

The research also found that, of investors with over £1m in investments, 51% see EIS and 46% see SEIS as “positive and impactful” vehicles to achieve their goals. 56% of these same investors said they were “completely on track” with achieving their goals, compared to just 39% of those with under £100,000.

Of those with under £100,000, 18% said they “would definitely” take on riskier investments to get back on track, against just 11% of those with more than £1m.

Mark Field, MP for Cities of London and Westminster, commented: “The EIS is designed to offer a stimulus for Britain’s ambitious small and medium businesses and provides a burgeoning asset class for British investors.

“EIS also plays a role in bringing forward the kinds of technological innovations that will be so important to maintaining Britain’s competitive advantage in business and finance on the world stage.”

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