Another door opens for entrepreneurs

Posted: January 5, 2015

No doubt the headline change announced in the Chancellor’s Autumn Statement was the new stamp duty regime for homebuyers.  At the same time, not only did he show support for the creative sectors (previously reported here), but the Chancellor opened the door to the Enterprise Investment Scheme (EIS) for entrepreneurs.

A gain that is eligible for Entrepreneur’s Relief (ER) and deferred and invested into EIS companies is now allowed to benefit from ER and also to retain the lower capital gains tax rate (10%) when that gain is eventually realised.  The Government hopes that this will provide a further boost to the increasingly popular scheme and, in doing so, support the growth of businesses in the UK.

The Government’s continuing commitment to EIS is also reflected in its promise to introduce a new online system for investors and companies using both the EIS and the Seed Enterprise Investment Scheme (SEIS).  With a planned launch date of 2016 for the new system, we look forward to seeing whether the Government succeeds in making EIS and SEIS schemes more accessible and easier to use for all involved.

In the meantime, whether you are moving home or moving businesses, the Chancellor seems to be encouraging investment.

Giao Pacey and Kieran Lavery

For more information on EIS, please see our previous update here and further details of the scheme here.

If you would like further information on EIS and SEIS generally, please contact Giao Pacey.  For information on EIS and SEIS in the media sector, please contact Jonathan Blair.