Investment tax breaks on agenda at event

June 12, 2012

Entrepreneurs looking for capital to boost their start-up firms, and investors who might be able to provide that boost, will be attending a special event next week which will examine the latest developments in the business investment tax regime.

Hosted by Rivers Capital Partners in partnership with RMT Accountants & Business Advisors, the 12 June event will look at the options presented by the Enterprise Investment Scheme (EIS), and will also highlight the introduction at the beginning of the new financial year of the Seed Enterprise Investment Scheme (SEIS).

The EIS helps smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies, and has been used regularly within the region to help businesses bring in new funds over the last three years.

SEIS investors can invest up to £100,000 in a single tax year and are able to pick up 50% tax relief in the tax year the investment is made. Each SEIS company can raise a maximum of £150,000.

The recipient company must be a UK start up business in an approved sector with fewer than 25 employees and assets of less than £200,000, and should not be an operation in which the investor has a controlling interest.
Topics that will be covered at the event, which will take place at the Malmaison Hotel, include qualification for EIS/SEIS investment, how to manage such funds once a company receives them and managing an exit with EIS/SEIS investors.

Attendees will also have the chance to speak informally to Rivers and RMT representatives about the impact that the EIS and SEIS might have on their current business interests.

Natalia Blagburn of Rivers Capital Partners adds: “Positive changes to the EIS, and the introduction of the SEIS are great news to early stage ventures, and many start-ups in our investee portfolio already qualify for the EIS and would potentially qualify for the Seed EIS.

“We are actively working with our investee companies to ensure they understand the intricate details of both schemes, how to qualify and why EIS/SEIS pre-qualified companies are attractive to business angels.”

Stephen Slater, director at RMT, says: “Securing investment capital at the right time remains one of the key challenges for entrepreneurs looking to build up a new business, whilst finding the right companies in which to put their money can be equally challenging for potential investors.

“We will be looking at the ways in which the EIS and SEIS schemes can provide advantages for all parties involved, and how businesses in our region are already utilising them to positive effect.”

Rivers Capital Partners is responsible for the management of the £7.5m Finance For Business North East Angel Fund.

For a potential investor to reserve a free place at the EIS/SEIS event, please contact Natalia Blagburn, Business Angel Relationship Manager via info@riverscap.com or call 0191 230 6370.

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