EIS Industry Report 2018/19

81 80 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Clear government support following 2017 Budget rule changes High-risk investments, only suitable for HNWIs and sophisticated investors Opportunity to invest in innovative companies, with the benefit of tax relief Brexit may pose challenges for growing companies, such as sourcing high-quality staff Attractive tax advantages, if underlying investments succeed Delays in capital deployment by some investment managers, resulting in delays to tax relief qualification Ability to defer CGT A Labour government may be less favourable towards Venture Capital Schemes Investment into scale-up companies that are contributing to the UK economy Fees and charges can sometimes be opaque Investment can support crucial sectors, such as medical technology, which have a significant benefit to society whilst generating attractive returns Investments will likely take far longer to exit than the three-year tax relief qualification period SWOT ANALYSIS OVERVIEW OF EIS S W O T APPENDIX REFERENCES 1 https://assets.publishing.service.gov. uk/government/uploads/system/up- loads/attachment_data/file/710986/ May_2018_Commentary_EIS_SEIS_SITR_ National_Statistics.pdf 2 gbinvestments.co.uk/eis/hmrcs-lat- est-annual-eis-statistics/ 3 eisa.org.uk/using-eis/facts-figures 4 https://gallery.mailchimp. com/8531da2fbdc169f4aaf697046/ files/d87fba92-5aa6-404f-b5f8- ffafcac98096/EISA_Autumn_Semi- nar_2018_Slide_Presentation_mas- ter_slide_deck_FINAL.pdf 5 confluencetax.com/hmrc-enter- prise-centre-why-the-delays 6 intelligent-partnership.com/ad- vance-assurance-forum 7 http://citywire.co.uk/new-model-ad- viser/news/comment-time-to-get-to- grips-with-new-eis-rules/a1115086 8 https://services.parliament.uk/ bills/2017-19/financeno2.html 9 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm8530 10 legislation.gov.uk/ukpga/2018/3/sec- tion/14 11 http://ec.europa.eu/competition/ elojade/isef/case_details.cfm?proc_ code=3_SA_49923 12 https://philiphareassociates.tax/news/ the-finance-act-2018-commence- ment-regulations-2018 13 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm8530 14 taxadvisermagazine.com/article/ new-%E2%80%98risk-capi- tal%E2%80%99-condition-venture-capi- tal-schemes-draft-guidance 15 att.org.uk/sites/default/ files/180130%20VCS%20-%20 HMRC%20Risk%20to%20Capi- tal%20draft%20guidance%20-%20 response%20from%20ATT%20-%20 FINAL.pdf 16 intelligent-partnership.com/ad- vance-assurance-forum 17 https://gallery.mailchimp. com/8531da2fbdc169f4aaf697046/ files/d87fba92-5aa6-404f-b5f8- ffafcac98096/EISA_Autumn_Semi- nar_2018_Slide_Presentation_mas- ter_slide_deck_FINAL.pdf 18 https://assets.publishing.service.gov . uk/government/uploads/system/up- loads/attachment_data/file/749078/ AgentUpdate68.pdf 19 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm16060 20 https://assets.publishing.service.gov . uk/government/uploads/system/up- loads/attachment_data/file/752001/ Knowledge-intensive_funds_consulta- tion_response.pdf 21 whatinvestment.co.uk/is-this-the-win- ter-of-growth-focussed-eis-fund-man- agers-content-2555108 22 moneyweek.com/488304/be- come-a-diy-biotech-venture-capitalist/ 23 https://about.beauhurst.com/ blog/2017-in-review/ 24 crowdcube.com/explore/investor/clari- fication-on-seis-and-eis-rules 25 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm35045 26 ibtimes.co.uk/what-do-new- seis-eis-guidelines-mean-crowd- funders-1662986 27 https://invest.great.gov.uk/industries/ health-and-life-sciences/medical-tech- nology 28 merciatech.co.uk/our-business/eis- funds/download-IM-and-reviews/ 29 downing.co.uk/sites/default/files/ downing_ventures_eis_-_brochure_-_ may_2018_low_res.pdf 30 https://info.sapphirecapitalpartners. co.uk/blog/seis-/-eis-for-film-is-it-still- possible?utm_campaign=SEIS&utm_ content=76033818&utm_medium=so- cial&utm_source=twitter 31 jonathanlea.net/2018/how-seis-and- eis-applies-to-film-production-com- panies/ 32 intelligent-partnership.com/ad- vance-assurance-forum/ 33 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm8560 34 gbinvestments.co.uk/article/the-ex- iteers-bringing-you-news-of-success- ful-exits-in-the-sector/ 35 insidermedia.com/insider/yorkshire/ private-equity-firm-exits-york-music-re- tailer 36 growthbusiness.co.uk/educa- tion-firm-gives-huge-investors-re- turn-in-exit-2554026 37 100stories.co.uk 38 https://files.syndicateroom.com/ guides/tax-efficient-investing-in-a-dig- ital-world.pdf 39 taxation.co.uk/Arti- cles/2015/06/22/333272/brought-line 40 https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/ attachment_data/file/661398/Pa- tient_Capital_Review_Consultation_re- sponse_web.pdf 41 https://about.beauhurst.com/ wp-content/uploads/documents/ The-Deal-2017-Web.pdf?utm_medi- um=email&_hsenc=p2ANqtz-_0QT- mjKvYsWUc29H3R10RHy8FcWt-7Vz- t1t-NplbjxaW-UKm4WI6KBsSF9D- bjyjo51224NLivswNzyiE99jSY- EY8zf8Xn2R6WeaOlCvW_HO5hi- etQ&_hsmi=57921629&utm_con- tent=57921629&utm_source=hs_auto- mation&hsCtaTracking=a33e9f69-404d -409c-be2a-f19ec979b64a%7Ca8a409 8c-c5e3-41a3-86c6-43409fa8dd30 42 gov.uk/hmrc-internal-manuals/ venture-capital-schemes-manual/ vcm8542 43 https://files.syndicateroom.com/ guides/tax-efficient-investing-in-a-dig- ital-world.pdf 44 foresightwilliams.co.uk/wp-content/ uploads/2018/03/FWT-EIS-Informa- tion-Memorandum-2018-FINAL.pdf 45 worldwealthreport.com/reports/popula- tion/europe/united_kingdom 46 https://about.beauhurst.com/ wp-content/uploads/documents/ The-Deal-2017-Web.pdf?utm_medi- um=email&_hsenc=p2ANqtz-_0QT- mjKvYsWUc29H3R10RHy8FcWt-7Vz- t1t-NplbjxaW-UKm4WI6KBsSF9D- bjyjo51224NLivswNzyiE99jSY- EY8zf8Xn2R6WeaOlCvW_HO5hi- etQ&_hsmi=57921629&utm_con- tent=57921629&utm_source=hs_auto- mation&hsCtaTracking=a33e9f69-404d -409c-be2a-f19ec979b64a%7Ca8a409 8c-c5e3-41a3-86c6-43409fa8dd30 47 wealthclub.co.uk/articles/invest- ment-news/backing-britains-brightest/ 48 investmentweek.co.uk/invest- ment-week/opinion/3064966/one- year-on-eis-investors-embrace-growth- stocks/page/2 49 gbinvestments.co.uk/eis/brexit-fails-to- dampen-eis-spirit/ 50 professionaladviser.com/profession- al-adviser/opinion/3031407/andrew- aldridge-how-should-eis-investors- play-brexit-countdown 51 investmentweek.co.uk/invest- ment-week/news/3061481/ uk-investors-believe-government- does-not-have-their-back-on-brex- it#disqus_thread 52 telegraph.co.uk/investing/isas/ find-cover-stock-market-invest-pri- vate-companies/