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Autumn statement offers boost for start-up businesses... Or does it?
In the recent Autumn Statement a new scheme designed to encourage investments in start-up companies was announced by George Osborne. The Seed Enterprise Investment Scheme has been labelled as ‘an invitation to invest in innovation’. Beginning from April 2012, this expansion of the Enterprise Investment Scheme will allow investors to claim a large tax relief for backing start-up businesses.

Under the scheme people can invest up to £100,000 into a qualifying start-up business, and would then be eligible for income tax relief of 50 per cent. This relief is available regardless of the rate of which the investor pays tax. The scheme is also open to companies, with a limit of £150,000. On top of this, the chancellor has also offered a capital gains holiday on investments made under the scheme.

So what does this actually mean for small businesses? The idea behind the scheme is to allow young companies who are keen to grow to have better access to financial support, despite the unfavourable economic climate. By allowing a more attractive return for investors, smaller businesses may be able to bypass the banks and seek alternative sources of finance.

This all sounds great but how much of an effect will it have overall? Certainly for friends and family who are happy to invest it could turn out to be very beneficial. However whether or not it has mass market appeal is not quite so clear. It would seem the new measures would appeal to angel investors more than large venture capital companies, but opinions are mixed on whether the new SEIS measures are too small to have the desired overall impact and unfreeze investment.

Only time will tell whether this scheme is effective at jump-starting investment, or just ends up as a reward for private investors. In either case we look forward to hearing any thoughts you have on the subject. If you have any issues or questions regarding the new SEIS, or securing investment for growth, feel free to contact us.
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In the recent Autumn Statement a new scheme designed to encourage investments in start-up companies was announced by George Osborne. The Seed Enterprise Investment Scheme has been labelled as ‘an invitation to invest in innovation’. Beginning from April 2012, this expansion of the Enterprise Investment Scheme will allow investors to claim a large tax relief for backing start-up businesses. Under the scheme people can invest up to £100,000 into a qualifying start-up business, and would then be eligible for income tax relief of 50 per cent. This relief is available regardless of the rate of which the investor pays tax. The scheme is also open to companies, with a limit of £150,000. On top of this, the chancellor has also offered a capital gains holiday on investments made under the scheme. So what does this actually mean for small businesses? The idea behind the scheme is to allow young companies who are keen to grow to have better access to financial support, despite the unfavourable economic climate. By allowing a more attractive return for investors, smaller businesses may be able to bypass the banks and seek alternative sources of finance. This all sounds great but how much of an effect will it have overall? Certainly for friends and family who are happy to invest it could turn out to be very beneficial. However whether or not it has mass market appeal is not quite so clear. It would seem the new measures would appeal to angel investors more than large venture capital companies, but opinions are mixed on whether the new SEIS measures are too small to have the desired overall impact and unfreeze investment. Only time will tell whether this scheme is effective at jump-starting investment, or just ends up as a reward for private investors. In either case we look forward to hearing any thoughts you have on the subject. If you have any issues or questions regarding the new SEIS, or securing investment for growth, feel free to contact us.

Home Our Services About Us Testimonials News Downloads Links Contact Us Find Us	Add News Item News Text Login Password: Autumn statement offers boost for start-up businesses... Or does it? In the recent Autumn Statement a new scheme designed to encourage investments in start-up companies was announced by George Osborne. The Seed Enterprise Investment Scheme has been labelled as ‘an invitation to invest in innovation’. Beginning from April 2012, this expansion of the Enterprise Investment Scheme will allow investors to claim a large tax relief for backing start-up businesses. Under the scheme people can invest up to £100,000 into a qualifying start-up business, and would then be eligible for income tax relief of 50 per cent. This relief is available regardless of the rate of which the investor pays tax. The scheme is also open to companies, with a limit of £150,000. On top of this, the chancellor has also offered a capital gains holiday on investments made under the scheme. So what does this actually mean for small businesses? The idea behind the scheme is to allow young companies who are keen to grow to have better access to financial support, despite the unfavourable economic climate. By allowing a more attractive return for investors, smaller businesses may be able to bypass the banks and seek alternative sources of finance. This all sounds great but how much of an effect will it have overall? Certainly for friends and family who are happy to invest it could turn out to be very beneficial. However whether or not it has mass market appeal is not quite so clear. It would seem the new measures would appeal to angel investors more than large venture capital companies, but opinions are mixed on whether the new SEIS measures are too small to have the desired overall impact and unfreeze investment. Only time will tell whether this scheme is effective at jump-starting investment, or just ends up as a reward for private investors. In either case we look forward to hearing any thoughts you have on the subject. If you have any issues or questions regarding the new SEIS, or securing investment for growth, feel free to contact us. Edit News Item In the recent Autumn Statement a new scheme designed to encourage investments in start-up companies was announced by George Osborne. The Seed Enterprise Investment Scheme has been labelled as ‘an invitation to invest in innovation’. Beginning from April 2012, this expansion of the Enterprise Investment Scheme will allow investors to claim a large tax relief for backing start-up businesses.<br><br> Under the scheme people can invest up to £100,000 into a qualifying start-up business, and would then be eligible for income tax relief of 50 per cent. This relief is available regardless of the rate of which the investor pays tax. The scheme is also open to companies, with a limit of £150,000. On top of this, the chancellor has also offered a capital gains holiday on investments made under the scheme.<br><br> So what does this actually mean for small businesses? The idea behind the scheme is to allow young companies who are keen to grow to have better access to financial support, despite the unfavourable economic climate. By allowing a more attractive return for investors, smaller businesses may be able to bypass the banks and seek alternative sources of finance.<br><br> This all sounds great but how much of an effect will it have overall? Certainly for friends and family who are happy to invest it could turn out to be very beneficial. However whether or not it has mass market appeal is not quite so clear. It would seem the new measures would appeal to angel investors more than large venture capital companies, but opinions are mixed on whether the new SEIS measures are too small to have the desired overall impact and unfreeze investment.<br><br> Only time will tell whether this scheme is effective at jump-starting investment, or just ends up as a reward for private investors. In either case we look forward to hearing any thoughts you have on the subject. If you have any issues or questions regarding the new SEIS, or securing investment for growth, feel free to contact us.	"I would not hesitate in recommending Feltons to any other business". Chief Executive, £25m+ turnover group
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