QVentures has launched a petition to the UK government to increase tax reliefs for the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) by an additional 30% for the next 12 months.
QVentures is asking for the next year:
● EIS tax relief is increased from 30% to 60%
● SEIS tax relief is increased from 50% to 80%
● SEIS maximum per company is raised from £150,000 to £250,000
One key challenge the government faces in the stimulus program is the ability to deploy the funding quickly and judiciously.
A fast, effective, and proven solution is to have private investors act as their delivery partners, who risk their own capital and not just public funding. Private/public partnerships have been a cornerstone of growth in the most economically developed countries and in the current crisis, can be a cornerstone to jumpstarting the UK economy.
According to HMRC’s SEIS and EIS Statistics Report published in 2019, over 33,000 investors claimed EIS tax relief on 7000 companies in 2017-2018.
QVentures believes these 33,000 investors can be used to deliver economic stimulus to all eligible SMEs throughout the UK. SMEs are hiring, providing employment opportunities for current workers in the UK and for future workers in the innovation economy.
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UK tax-paying private investments in early-stage companies will show leadership and confidence in the UK economy while encouraging Foreign Direct Investment, Corporate Venture Capital investment, and stimulating International Trade.
By providing the UK’s most innovative and progressive start-ups with access to long-term capital, EIS and SEIS schemes are hugely beneficial to the UK economy as they create jobs and support the growth of businesses to launch new services and products.
QVentures Managing Partner, Robert Walsh says:“I believe this is a fast and effective way for the Government to decrease the impact of the recession, decrease job loss and create the next generation of SME’s businesses.
“Investors and the government working in partnership creates the right reward system to know the money will be allocated judiciously and to a diverse number of industries and businesses.”
Pip Wilson, Co-Founder and CEO of amicable, added, “As the world comes out of this unparalleled period, the UK will need innovative fast-growing companies to help our economy recover. Measures such as these could make a massive difference to the amount of cash flowing and help exciting start-ups survive the next few months.”