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Autumn Budget 2017

Autumn Budget 2017: James Peck - Tech & Media

Comment on Enterprise Investment Schemes (EIS), James Peck, Associate Director, Tech & Media specialist said:

“The Chancellor’s commitment to improving the benefits attached to EIS investments for knowledge intense companies is a clear indication of Mr Hammond’s continued support for the UK being “at the forefront of a technological revolution”. Over the years, EIS has been extremely successful in attracting investment from private investors, more than £16bn since the scheme launched in the mid-90’s.”

Proposed improvements to EIS will centre around:

  • Doubling EIS investments for knowledge intensive companies by EIS investors from £1m to £2m
  • Doubling the annual investment limit from £5m to £10m through EIS and VCT
  • Greater flexibility provided for knowledge intensive companies over the age limit for when a company must receive its first investment through the scheme.

“The Chancellor’s commitment to knowledge intensive companies is a positive move from the Government to encourage capital investment into vibrant and earlier stage businesses. This will directly lead to improvements in innovation and job creation that can only act to bolster the UK economy.  While future opportunities for capital investment can only be applauded, the pessimist will ask what additional administrative burdens will be attached to the new rules, but surely additional funding will always outweigh red tape?

“Additional investment reliefs, coupled with improvements to the R&D tax credit scheme, will serve to strengthen the UK technology sector as we face the countdown to an uncertain Brexit eco-system.”