5th June 2019

 

In May 2019, HMRC released its statistics for companies raising funds covering the tax year 2017-2018.

Highlights;

  • £1.929bn raised under EIS for 3,920 companies – (HMRC estimate this will rise to £2.041bn and 4,130 companies as more returns are received) one of the largest raises on record;

  • £189m raised under SEIS for 2,320 companies;

  • London and the South East accounted for 67% of all EIS investment;

  • EIS has now raised over £20bn since 1994 funding 29,770 companies;

  • Information and Communication sector received 33% of all EIS investment;

  • HMRC approved 62% of all Advance Assurance applications compared to 75% the previous year;

  • More companies are raising money through EIS for the second, or third time;

  • 43% of companies raise funding of less than £150,000;

  • 33,605 investors claimed EIS tax relief in 2017-2018 (estimated to rise to 37,350).

 

Andrew Aldridge, Partner and Head of Marketing at Deepbridge Capital, commented:

“The Enterprise Investment Scheme continues to offer investors access to investment opportunities in early-stage UK companies, with the benefit of potential tax reliefs, whilst providing vitally important patient capital to support UK plc.” 

“In addition to the official statistics from HMRC, at Deepbridge we report anecdotal feedback that increasing numbers of financial advisers are now appreciating the important role that EIS can play in appropriate clients’ portfolios.  As the Scheme increasingly focuses on supporting growth-focused companies, it is imperative that advisers work with managers who know and understand how to identify and support such investment opportunities.” 

For the full report please visit https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/804455/May_2019_Commentary_EIS_SEIS_SITR_National_Statistics.pdf