IOD seeks improvements to EIS and Seed EIS scheme
The business group, the Institute of Directors (IoD), has called on the government to boost entrepreneurship by simplifying key tax reliefs..
The IoD has claimed in a new report out this week that the full potential of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) is “not fully being realised” due to the complexity of the rules.
“EIS and SEIS can open up the equity economy and help more people take a stake in the start-up revolution taking place around the country,” said Jimmy McLoughlin, the deputy director of policy at the IoD
He also stated that “Too few businesses… are aware of these schemes, and not enough investors feel confident enough to get involved.”
The IoD said £1.6bn was invested in up to 24,000 firms through the investment tax relief schemes in 2013/2014. However, it also stated that 95%funds came from large investors. Interestingly, 69% of this investment was made in businesses based in the South East region.
The IoD also makes some interesting potential amendments which it believes will promote use of these reliefs, including:
- pushing for EIS and SEIS investments to be included in a super-ISA;
- introduction of an online system for claiming tax relief on investments of less than £2,000; and
- a so-called “aggregator fund” to allow smaller investors to participate.
If you have any queries about this blog or EIS and SEIS In general then please let us know.