Business Angels investing in startup UK companies are gearing up for tax breaks of between 50 and 78% for investments which are made after 6th April 2012.
The UK government has made it a priority to get funds into small fledgling businesses and will offer a 50% rebate – even if the individual making the investment isn’t paying 50% income tax.
What is more, if you make a capital gain in the tax year 2012 / 13 and invest that money in a startup, then you’ll also get the 28% capital gains relief – a massive 78% relief in total.
You can read the detail of the UK government scheme here (Seed Enterprise Investment Scheme or SEIS)…
There are a few restrictions – but they are relatively minor – ie
- smaller companies, those with 25 or fewer employees
- companies with assets of up to £200,000,
- carrying on or preparing to carry on a new business;
- directors who invest in their companies;
- annual amount of investment limited to £100,000 per investor, with unused annual
- amounts able to be carried back to the previous year
- investment limit of £150,000 for the company on a cumulative basis, not an annual limit
Want access to Business Angel deals? If you are a high net worth or sophisticated investor, then you may attend our investor evening on the 22nd February. Please contact us for details…