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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

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.”

Learn more about the SEIS here.

Henry Williams
Henry Williams

Henry has been writing for since 2015, covering everything from business finance and web builders to tax and red tape. He’s also contributed to many of our industry-renowned annual indexes, including Startups 100 and Young Guns, and created a number of the site’s popular how to guides. Before joining the team, he reviewed films for a culture website, and still harbours ambitions of being a screenwriter.


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