Support for EIS and SEIS from the Conservative Party
The Conservatives have just launched their Manifesto for the upcoming UK General Elections, and the 59-pager is filled with all the commitments and promises laid out by the party. Amongst the promises to ”get Brexit done” and the ”unleash Britain’s full potential”, Boris Johnson is committing to back entrepreneurs and innovation!
In the manifesto, it states: ”we are proud of the work we have done to support entrepreneurship and want to see more entrepreneurs, including women and those from BAME backgrounds. Some of our work has been spectacularly successful—such as the Seed Enterprise Investment and Enterprise Investment Scheme, which we will continue in the next Parliament.”.
Good news for all SMEs across the UK, the Conservatives have a history of supporting entrepreneurship in Britain, and this time around seems no different.
The EIS and SEIS are successors to the 1981 Business Expansion Scheme launched by the Thatcher government. Then and now, the goal was to provide entrepreneurs access to the much-needed capital for the growth of their businesses by giving investors tax incentives, thus helping with funding that would otherwise be non-existent. The BES was replaced by the EIS in 1994.
The manifesto touches on how entrepreneurs risk their savings and futures to provide innovation to society. There is a wish to be a ”nation of start-ups and successful scale-ups”. To further support start-ups, the Conservatives will cut corporation tax from 29% to 19%, increase R&D tax credit to 13% as well as review the definition of R&D so that new innovations in cloud computing and data are also included. Moreover, they will review and reform Entrepreneur’s Relief, and explore how entrepreneurs can better access finance and credit.