EIS Tax Relief 2023 – The Ultimate Guide

If you are looking to take advantage of tax efficiency schemes through investment in early-stage businesses, then whether you’re an investor or a founder, The Enterprise Investment Scheme (EIS) could be exactly what you need.

The government scheme was designed to make it more appealing to support exciting UK businesses, by offsetting some of the associated risk through offering tax reliefs to investors who purchase shares in these companies.

Read more about this here.

Why should I consider investing now?

Govox has seen steady growth since 2021. Our user base consists of over 200 organisations, with a strong 92% renewal rate and 43% of new enquiries converting to sales.

Today we are supporting users in 10 countries and in multiple languages & we are already exploring global expansion opportunities, via well placed conversations with identified partners, in a number of overseas markets, including New Zealand, Australia, the GCC, Spain & South Africa, via what we believe is a low risk reseller model that will be repeatable in all future territories. 

That is a great start, but we believe we have plenty of opportunity ahead, Govox has a huge total addressable market. We calculate this figure to be over £231-million in the UK alone.

Later in 2023 we plan to launch a brand new B2C proposition that will enable anyone to access the Govox support, we will be focusing on key customer segments to ensure current challenges are supported.

Why are Govox crowdfunding?

• We’re growing! 

Govox has seen steady growth since 2021. Our user base consists of over 200 organisations, with a strong 92% renewal rate and 43% of new enquiries converting to sales. 

We are supporting users in 10 countries and in multiple languages & we are already exploring global expansion opportunities, via well placed conversations with identified partners, in a number of overseas markets. 

• We’ve got big plans 

This fundraising round is timed to support 2 key growth areas:   

1.  Sales & Marketing expansion of the core and proven, Govox B2B proposition

2.  The launch and distribution of the new Govox single user B2C proposition, soon you will be able to purchase a Govox subscription for someone close to you

Having already delivered approaching 1 million Check Ins, our Govox data identifies that 9% of people would benefit from some help now. 

We believe your investment will help us accelerate our plans to support many more people and build happier & healthier teams.

How Do I Invest?

Our campaign is currently open for registration on Seedrs - and will soon be going live to the public, so sign up now to make sure you get in nice and early.  

Seedrs will guide you through the process of investing, and having worked with hundreds of start-ups to raise billions of pounds in investment, we’re very glad to be partnering with them to enable you to join us in our journey to reshape the art world

Who are Seedrs?

Founded in 2009, Seedrs is one of the leading equity crowdfunding investment platforms in the UK. Since its start, Seedrs has helped 1300+ businesses raise £1.2Billion in investments.   

Seedrs enable all types of investors to invest in businesses they believe in and share in their success. 

Seedrs enable all types of growth-focused businesses to raise capital and a community in the process.

Seedrs unique offer protects and empowers investors while helping businesses grow.

Seedrs are equity crowdfunding done properly.      

For more information about Seedrs    

How do I invest in start-ups through Seedrs?     

Invest in the equity of ambitious, growth-focused businesses and receive full voting shares with professional grade investor protections. There are 3 ways you can invest on Seedrs.  To find out more   How To Invest In Business Startups For Equity | Seedrs   

Why invest on Seedrs?

There are many benefits of investing on Seedrs, below are seven to help you get started;

Enjoy peace of mind with world-class due diligence

We conduct thorough due diligence on the company that’s raising, its legal structure and its directors before we close an investment. In fact, our investment team performs key checks and searches on every company that raises on the platform, using a combination of public registers, third-party sources and information requested directly from the company. No wonder our due diligence is becoming known as the Seedrs Standard.

1. Invest on the same terms no matter how much you invest

   On Seedrs, you’ll become a shareholder in a business on exactly the same terms as everyone else – including professional investors such as venture capitalists if they’ve invested in the campaign on Seedrs.

2. You could maximise UK investors tax reliefs

   If you’re a UK taxpayer, you could take advantage of generous tax reliefs, including up to 50% of the investment cost back in Income Tax Relief if you invest in SEIS eligible shares or 30% in EIS eligible shares. We’ll even take care of your organising your digital tax certificate which will be available to download in your Seedrs account.

   Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. Seedrs does not provide legal, financial or tax advice of any kind, and nothing in this guide constitutes such advice. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs or its affiliates, you should consult a professional adviser.

3. Enjoy professional protections and warranties

   We enter into a suite of professional contractual protections with each company that raises on Seedrs, including warranties that provide a level of legal protection against a business providing inaccurate information. We also generally ensure that the company’s shareholder agreement contains pre-emption rights on the issue of new shares and investor consent rights over the creation of new classes of shares.

4. The opportunity to maintain your ownership percentage with pre-emption rights

   If the business you’ve invested in decides to raise further funds, because all investments on Seedrs automatically include pre-emption rights, you may be given the chance to invest your pro-rata amount in that round based on your current shareholding. This gives you the option of maintaining your percentage of ownership of the company – and may help you to maximise your returns if the investment is successful.

5. Easily manage your portfolio online

   Stay up-to-date with how your portfolio is performing with real-time reporting. Then, if returns are generated, we’ll credit those funds, less our fee (and for publicly listed shares, any broker fee), directly into your Seedrs Investment Account. From there you can re-invest into other businesses on Seedrs or withdraw the funds from your account.

6. Unparalleled liquidity opportunity on the Seedrs Secondary Market

   The Seedrs Secondary Market is the only fully functioning early-stage equity secondary market in the UK, enabling you to buy and sell the shares of businesses that have raised on Seedrs. This allows you to rebalance your investment portfolio or potentially seek an earlier exit. The Seedrs Secondary Market opens for one week each month.

How to start investing on Seedrs in just 3 simple steps:

We’ve made it easy to invest in businesses you believe in and share in the success on Seedrs:

1. Sign-up and become an authorised investor in minutes

   If you’re new to investing on Seedrs, you need to create a free account and become authorised to invest. Start by selecting the investor profile that best describes you: ‘Everyday Investor’, ‘High Net Worth Investor’ or ‘Sophisticated Investor’. You’ll see short definitions of each profile to help you decide on the most appropriate one for you when you sign-up.

   As part of the regulatory process that all financial institutions must carry out, we’ll also need to verify your identity through a valid form of ID.

2. Review pitches of the businesses you’re interested in

   Check out a businesses pitch, ask questions to the entrepreneurs and even request further information if you need to.

3. Make an investment

   If you’ve discovered a business you wish to invest in and are now an authorised investor on Seedrs, it’s easy to make your investment and join the business on its journey.

   Click ‘Invest’ on the pitch page.

   Register for priority access to the Govox campaign here. 

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future. No communications about any campaigns on Seedrs you receive from Seedrs or the fundraising business, through email or any other medium, should be construed as an investment recommendation.

This blog has been approved as a financial promotion by Seedrs Limited on [DATE] and is sent by Feedback 360 Ltd.

Seedrs Limited is authorised and regulated by the Financial Conduct Authority. Seedrs Limited is a limited company, registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW