Director General of EISA on the Patient Capital Review and EIS/SEIS implications
- On August 7, 2017
- By GrowthInvest Admin
Mark Brownridge, Director General of the EIS Association, on the Patient Capital Review and its implications for EIS and SEIS:
In February HM Treasury (HMT) announced that it would be launching a Patient Capital Review with the objective of “strengthening the UK further as a place for growing innovative firms to obtain the long-term ‘patient’ finance that they need to scale up”. There was some confusion as to whether EIS and SEIS would be within the remit of the review, within a few weeks later in the Spring Budget, we received confirmation they would be.
Our friends at the BVCA tell us they have heard from reliable sources that the consultation document is due for release very soon, with an anticipated closing date of late September. Recommendations to the Chancellor will then take place with potential new policies possible as early as the Autumn Budget. At the time of launch of the review, no one could have envisaged a snap election, so perhaps it’s no surprise we have had to wait a little longer than we would have liked.
There has been talk that this could be where EIS has a part to play, through an enlarged scheme that builds a bridge from the financing role EIS currently has to something that helps businesses scale up further and encourages more significant rounds of funding – a ‘Super EIS’ if you like. Of course, this would mean expanding EIS and therefore potentially increasing the amount the Government pays out in tax relief. At a time when the Treasury is looking to save, not spend money, the argument in favour would need to be incredibly strong.
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