Raising Capital from Investors

Raising capital from investors is a tough challenge faced by many new start-ups, especially in those working in fast growing industries.

There are, however, a number of ways you can make this process easier. With some planning at the outset it should be possible to structure the investment opportunity so that the investor will benefit from tax relief on his investment and even ensure that any gains are tax free.

One such scheme is known as the Enterprise Incentive Scheme or EIS. This scheme offers 30% tax relief for investors in qualifying companies.

A new scheme was introduced on 6 April 2012 which was aimed at smaller organisations at the very early stages in its business life cycle. The Seed Enterprise Investment Scheme (SEIS) offers income tax relief of 50% for investors.

In order for a company to qualify for the schemes it must meet a number of requirements and it is important to get these right from the outset. Professional guidance should be sought to make sure that the company does not fall short of its requirements and the tax relief is lost.

To discuss how we can help further please contact Athos Louca at athos@loucas.org.uk or on 01622 758257.

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