If you are knowledgeable about shares, you will be aware of the many investment schemes available. One popular type involves subscribing for new shares in small trading companies. While this can be risky, it does provide a basket of tax reliefs.
What Small Company Schemes Are Available?
Two examples of scheme types that target early-stage companies are the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS). While these were scheduled to end in 2025, both have been extended indefinitely. Not only this, but from the 6th of April 2023, it will now be possible to invest double the amount in SEIS, taking the total up to £200,000 per year.
If you are a company using SEIS to raise funds, you will be pleased to know that the conditions have relaxed. The scheme can now raise up to £250,000 while allowing you to have assets of up to £300,000. Although currently, you need to be within 2 years of starting your trade to receive SEIS funds, this will now be extended to 3 years.
Why Not Consider Offering Shares To Employees?
As an employer, it is beneficial to consider offering share options to your employees. Under the current Company Share Option Plan (CSOP), employees can be granted shares up to the value of £30,000; however, from April 2023, this cap will be doubled to £60,000. It is an excellent way to motivate and retain staff, creating a better company culture.
If you are interested in raising money to start a business, develop your company or implement shares schemes, our team would happily advise you on the best-suited scheme – contact us to get started!