Benefits Of Considering Seis Investment Funds For Your Startup Portfolio
As one of the UK’s most widespread investment schemes regarding tax incentives and reliefs, many capitalists are aware of what the Seed Enterprise Investment Scheme is all about. SEIS is pretty much similar to the EIS, usually known as its sister scheme and provides widespread seis investment tax reliefs to investors investing in qualifying start ups in the UK.
SEIS investment funds are funds that will allow individual investors the opportunity to invest in a basket of qualifying startups. Even though it has been functional since the year 2012, many knowledgeable investors are not aware of the true potential of the SEIS.
It is important that any investment opportunities uk you make should begin with conducting the necessary due diligence before investing in a start-up. That said, aside from the actual properties of the start up in question, the SEIS scheme will mitigate some of the risk by provide generous tax advantages for your investment
You Are Supporting The Next Generation Of Businesses.
HMRC proposed the SEIS in 2012. Its objective is to encourage investment into fresh startups and small businesses to get the funding they need to gain traction and scale up in their respective markets. Generally, SEIS applies to much smaller businesses than the EIS – to be precise, businesses employing up to 20-25 people, with total assets of up to £200k.
With the level of investing in a startup that can increase under the SEIS rounded off at £150,000, the whole objective is for capitalists to back the next generation of UK startups to get off the ground. The investors will have an idea and demonstrate to some extent whether it is working or not. Also, it gets clear whether they need the financial backing and general business support to help them get ahead and implement their growth strategy.
Entrepreneurship fuels Entrepreneurship!
The startup economy and Seed Enterprise Investment Scheme relatively follow everyone involved. The more investment is made, the more startups are supported on their journeys forward. However, that is true that not all the startups will succeed further. Those that do usually increase investment further and become more successful. We have to cite that by investing in the next generation of businesses, you are already fueling the UK’s entrepreneurial ambition, mindset, and passion. Eventually, you are investing in developing future leaders. These startups will make a real change, revolutionizing their respective sectors.
KNOW WHETHER SEIS IS RIGHT FOR YOU
As mentioned before, with high risks come high returns. Exploring options to invest in SEIS qualifying companies of SEIS investment funds which invest in groups of these can be a much more risky undertaking than investing in more mature companies. However, if you are quite open to risk as an investor and enjoy the chance of there being a much higher ROI. In that case, SEIS could be a favourable option for you.
Always keep in mind that before investing in anything, it is always a good idea to take an expert’s advice and do some independent research. In the end, whether you choose to invest or not is completely up to you and your circumstances; Seed Enterprise Investment Scheme is extremely popular, with over £600 million of investment made into the possible opportunities in the year 2016 alone. Also, the SEIS tax reliefs have turned out to be advantageous for most investors. However, it is equally important to feel confident before investing anything into it. You never know; the returns may be really worth the risk.