The MoneyLab Blog

SEIS/EIS for film - is it still possible?

Posted by Vasiliki Carson, Sapphire Capital on 21-Aug-2018 12:47:15


It is five months since the latest SEIS/EIS rules were enacted (see our prior blog “Autumn Statement 2017 – SEIS and EIS implications”), and we are now starting to understand the effect, particularly within the film and TV sector which appears to be significantly impacted.

 

The complexity related to EIS and film companies results from the new “Risk to Capital” condition enacted on the 15th of March 2018.  This condition, which gives more discretionary powers to HMRC was introduced to ensure the schemes support early-stage companies with the potential to grow in the long term. The change was required as certain companies used the schemes to create tax motivated, low-risk investment opportunities, referred to as “capital preservation investments” (e.g., using EIS monies to buy property from which the company traded).

Read More

Topics: 2017 Autumn Statement, HMRC advance assurance, Film, Film SEIS

Autumn Statement 2017 - SEIS and EIS implications

Posted by Vasiliki Carson, Sapphire Capital on 22-Nov-2017 22:00:55


Today's Autumn Statement 2017 gave positive news for the patient capital sector and a vote of confidence to the Enterprise Investment Schemes. Following Twitter this afternoon, one could almost hear a collective sigh of relief coming from financial advisors, investors and entrepreneurs alike, as the action points from the Patient Capital review were revealed. The main changes announced for the Enterprise investment schemes are as follows:

 1) The support to "knowledge intensive" companies significantly expanded, doubling the limits for investment in such companies. The annual investment limit will increase to £2 million, and a qualifying firm will now be able to raise up to £10 million through EIS. Also, there will be greater flexibility as to the age limit of a company, so that older enterprises could still avail of the schemes.
Read More

Topics: 2017 Autumn Statement

Upcoming changes to the Enterprise Investment Scheme rules

Posted by Vasiliki Carson, Sapphire Capital on 24-Oct-2017 09:28:48

 

Over the past few months, the Enterprise Investment Schemes received a lot of attention as HM Treasury published their Patient Capital Review Consultation. It is fair to say that some negative feelings for the schemes surfaced as a result of the consultation's conclusions. The private sector has responded, and the result is that significant changes to the schemes are to be announced during the Chancellor's Autumn Statement scheduled for the 22nd of November, 2017.

 

What potential changes should we expect?

Mark Brownridge, the Director General of the EIS Association recently explained to EIS Association members that the upcoming changes are being made to sharpen the schemes' focus on "high risk, innovative and growing companies that can scale up". Making a case for increasing employment and tax revenue will no longer be enough for a company to avail of the schemes. Mark identified a pattern coming out of his discussions with government officials: "listen carefully ... and the keywords you will hear are growth, innovation, and technology. This is [government's] new definition of well targeted. Whether you agree or not, this is HM Treasury's desired direction of travel."

Read More

Topics: 2017 Autumn Statement