British economy: 3 tools
Investing in smaller businesses can often be viewed as risky. But there can
be significant tax incentives for investing in some companies, which help to
mitigate economic risk, the 3 tools of the british economy are:
Investors obtain a tax cut up to 30%, supporting small and unquoted companies, through the Enterprise Investment Scheme (EIS).
Seed Enterprise Investment Scheme (SEIS) provides a rate of income tax relief of 50% for individuals who invest in qualifying seed companies.
Venture Capital Trusts (VCT) is designed to encourage individuals to invest indirectly in a range of small higher-risk trading companies, boosting the economy, receiving up to 30% of tax relief.
For those companies looking for alternatives to bank funding, the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) are options well worth exploring.
This guide provides an overview about these 3 tools of the British economy for companies and potential investors who have heard of the schemes and want to know more about it and how it works. It does not cover all the detailed rules, so companies and investors should not proceed solely on the basis of the information in it, and should consider seeking professional advice.