TAX INCENTIVE SCHEMES FOR SME BUSINESSES

HMRC offer a number of tax incentive schemes to stimulate investment in new businesses. Depending on how much funding is required will direct you to which scheme is applicable to your enterprise. HMRC venture capital schemes are:

  • The Seed Enterprise Investment Scheme (SEIS)
  • the Enterprise Investment Scheme (EIS),
  • the Venture Capital Trust scheme (VCT Scheme),
  • Share Loss Relief (effectively relief against income for capital losses on certain shares, previously called ‘VC Loss Relief’)

These schemes are grouped together as they have similar aims and have certain legislative features in common.

  • There is also the Corporate Venturing Scheme (CVS). Though this scheme only relates to made before 31 March 2010. Investments made before that date continue to attract relief as long as the relevant conditions are met for the qualification period.

This guide provides an overview for companies and potential investors. It does not cover all the detailed rules, so companies and investors should not proceed solely on the basis of the information in it, and should consider seeking professional advice.