Blockchain could save billions in tax

Sir Mark Walport, the Government’s chief science adviser, says in a major new review published this week that Blockchain could save billions in tax by greatly reducing the levels of fraud in welfare and benefit payments.

A bit like replacing old leaking water pipes with brand new ones. The new technology could provide a cheap and easy way of verifying identities and provide a transparent account of how public money is spent.

In simple language, “blockchain” or “distributed ledger” technology means a universal financial transactional database which is shared by everybody, so if one party suffers disruption or loss of data, they will be able to rely on another party to retrieve the data.

What is driving this new technology is the dramatic savings which are going to be made by large financial institutions, all desperate to reduce their cost base, when they convert to the new status quo

The amount of technology and software systems required to bring about this revolution over the next 10 years is truly awesome, which helps explain the explosion of growth in Fintech over the last two years. FinTech investment is considered the fastest-growing in the UK and Ireland (according to Accenture). With deal volumes growing at 74% (versus 13% in Silicon Valley), the UK and Ireland have become a hub for FinTech startups and investment.

At EIP, we believe Fintech represents an exciting new departure for enterprise investing and we have partnered with FinTech Circle, Europe’s first angel network, to bring to investors the opportunity of investing into a spread of FinTech investments with the benefit of SEIS relief. The FinTech 2016 SEIS Fund is leveraging this booming sector to support start-ups by providing capital, mentorship and ongoing support. For investors, this offer provides not only the opportunity to get involved in an exciting sector, but also to receive 50% tax relief on their investment through the Seed Enterprise Investment Scheme (SEIS).

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