SEIS and EIS PRIVATE & CONFIDENTIAL Raising money through SEIS - - PowerPoint PPT Presentation

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SEIS and EIS PRIVATE & CONFIDENTIAL Raising money through SEIS - - PowerPoint PPT Presentation

Feb 20, 2024 308 likes •442 views

SEIS and EIS PRIVATE & CONFIDENTIAL Raising money through SEIS and EIS 01 June 2020 What I I will be covering today: Introduction to Sapphire. What is SEIS and EIS? What are the benefits to investors? Overview of

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PRIVATE & CONFIDENTIAL Raising money through SEIS and EIS 01 June 2020

SEIS and EIS

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What I I will be covering today:

  • Introduction to Sapphire.
  • What is SEIS and EIS?
  • What are the benefits to investors?
  • Overview of qualifying conditions Companies must meet.
  • How can Overseas Companies qualify for SEIS and EIS
  • Knowledge Intensive Companies.
  • Application process.
  • Ways to raise money through SEIS and EIS.
  • Questions?
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Sapphire Capital Partners LLP

SEIS and EIS Advance Assurance Compliance Statements Fund Management Investor Documents Structuring companies for investment under SEIS and EIS.

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What is SEIS and EIS IS

  • UK Government backed investment scheme

to support start-ups.

  • Encourages innovation and company

growth by offering UK investors attractive tax relief’s.

  • Allows start-up, high risk companies raise

much needed capital.

  • Both UK and Overseas Companies can raise

money through the Schemes.

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What are some benefits to UK investors?

SEIS: EIS: Income Tax Relief: 50% 30% Max amount to invest per person per year: £100,000 £1,000,000 Loss Relief Yes Yes Minimum qualifying period 3 Years 3 Years Inheritance tax relief Yes Yes No Capital gains tax to pay

  • n any gains after the

qualifying period: Yes Yes Tax Free Dividends No No

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Overview of

  • f qual

alify fyin ing con

  • nditions Companie

ies must meet.

  • Company must carry out a qualifying trade.
  • Cannot be controlled by another company.
  • Needs to have intention to grow and develop over

the long term.

  • Must not be listed on recognized stock exchange

(AIM is qualifying).

  • Investment raised must be spent within two years.
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How can Overseas Co Companie ies quali lify fy for r SE SEIS IS and EIS: IS:

  • Must have a permanent establishment in the
  • UK. A UK agent can act as a permanent

establishment.

  • The Company needs to have a Customer

Registration Number (“CRN”) and a Unique Tax Reference (“UTR”).

  • Open a UK branch via Companies House

(OSIN01 Form).

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Knowledge In Intensive Companies

  • Defined as a company that is carrying out

innovation or R&D.

  • £20m raise (£10m per year).
  • Investors can invest £2m per year.
  • Receive investment within 10 years of

commercial sale.

  • 500 full time employees.
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Some Statistics:

  • £2B was raised through EIS in

2017/18 (4,130 companies).

  • £20B has been raised through EIS

since 1994 (29,770 companies).

  • £189m raised through SEIS in

2017/18 (2,320 companies).

  • £1B has been raised through SEIS

since 2012 (12,900 companies).

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Application Process for Advance Assurance

UP TO DATE BUSINESS PLAN. MOST RELEVANT SET OF ACCOUNTS IF APPLICABLE. DIRECTORS RESOLUTION. TWO-YEAR FINANCIAL PROJECTIONS SHOWN MONTHLY. COVER LETTER. RELEVANT SUPPORTING DOCUMENTS (SUBSIDIARIES/IP ETC/ SHAREHOLDERS AGREEMENT). UTR NUMBER.

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Ways to raise money through SEIS and EIS IS.

ANGEL INVESTORS FUNDS CROWDFUNDING SYNDICATES INVESTOR NETWORKS

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Questions

  • Johnathan Graham
  • Graham Capital Partners LLP
  • Johnathan@sapphirecapitalpartners.co.uk
  • +44(0)7833085164