According to research released by YouGov, a staggering 87% of investors are in the dark about the huge benefits which can be garnered from the Seed Enterprise Investment Scheme (SEIS). This news comes despite the fact that the scheme has grown rapidly in popularity after the initial launch in 2012.
SEIS offer investors a 50% return on invested amount as a saving on income tax annually in return for placing funds into one of the UK’s young qualifying start-ups.
With a maximum annual investment of £100,000, this can mean a £50,000 reduction on the tax bill each year. Also included is CGT relief and zero inheritance tax. Loss relief is also offered, and the entire scheme essentially minimises the usual level of risk associated with investing in a company under two years old.
The research was conducted using 2,341 people, and from the number who invested in start-ups across the previous two years, 25% used banks, another 28% used stockbrokers, 14% took the IFA route, and 3% used crowdfunding. This trend is set to change dramatically across the next 10 years. While crowdfunding and SEIS work well together and have also provided vital investment to some of Britain’s brightest young stars, they are two investment trends still very much in their youth.
As word continues to spread about the huge incentives to become involved in investment through SEIS, it is likely many will see the scheme as the ONLY way to invest.
For more information on SEIS and the benefits it offers for both investors and entrepreneurs, a comprehensive guide is available to download from SEIS.co.uk
You can download the SEIS Guide here