Helping hand from HMRC

Helping hand from HMRC

HMRC runs a number of schemes designed to support growing businesses

Seed Enterprise Investment Scheme (SEIS)

HMRC

At the time of the new shares being issued, start-up companies eligible to receive investment through the SEIS must:

  • employ fewer than 25 full-time equivalents
  • have less than £200,000 of gross assets
  • not have had any EIS or VCT investment.

Companies can receive a maximum of £150,000 under an SEIS.

Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) Scheme

Businesses eligible to receive investment through the EIS or VCT schemes must, at the time of the capital raising:

  • employ fewer than 250 full-time equivalents (500 for ‘knowledge intensive’ companies)
  • have less than £15m of gross assets, and no more than £16m after the capital raising
  • not be listed on a recognised stock exchange, such as the London Stock Exchange, (but AIM
  • listed companies are permissible)
  • be carrying on a ‘qualifying’ trade.

The EIS Association (EISA), the official trade body for the Enterprise Investment Scheme, has more information about the scheme on its website.

Social Investment Tax Relief (SITR)

Social enterprises eligible to receive equity (or with certain restrictions debt), investment through the SITR scheme must, at the time of the capital raising:

  • employ fewer than 500 full-time equivalents
  • have less than £15m of gross assets, and no more than £16m after the capital raising
  • not be listed on a recognised stock exchange, such as the London Stock Exchange (but AIM listed companies are permissible).

There are further requirements, which the company or social enterprise must meet for a continuous period from the issue of the shares (or debt if raised through the SIRT scheme).

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Companies can raise a maximum of £5m in any one year, and £12m in total, from these four schemes, (or £20m for ‘knowledge-intensive’ businesses).

For the latest range of tax reliefs, please visit the HMRC website.

 

Together on the journey

Access to the right kind of finance at every stage in your growth journey enables businesses like yours to invest, grow and create jobs. That’s why the British Business Bank and ICAEW’s Corporate Finance Faculty, and partner organisations representing finance and business, have created the business finance guide.

> Find out more about our partners

The Business Finance Guide

Download our comprehensive guide in PDF format allowing you to print and read at your leisure.

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