The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are two of the tax advantaged venture capital schemes in the UK, the other being the tax relief for investment in venture capital trusts. Owing to demand for data on these schemes the UK government is now compiling statistics for the take-up of these schemes at quarterly intervals.

The statistics show the amount of funds raised by companies using the tax advantaged incentive schemes EIS and SEIS. These statistics are compiled using the company compliance statements EIS1 and SEIS1. The figures are still provisional because companies are given several years in which to submit the forms, although most do so in the first three years.

Statistics for EIS

According to the provisional data for 2013/14 GBP 1,457 million was raised by 2,710 companies under the EIS scheme. For the previous year 2012/13 a total of GBP 1,032 million was raised by 2,465 companies. Companies raising funds for the first time under the scheme raised GBP 771 million in 2013/14 compared to GBP 576 million in the previous year.

More funds were raised under the EIS in 2013/14 than in any previous year since the scheme was introduced. The funds raised have increased partly because the income tax relief to investors was raised from 20% to 30% in 2011/12, and also because the limit on funds that could be raised by each company was increased to GBP 5 million from 2012/13.

Statistics for SEIS

The SEIS was launched in 2012 to raise funds for very early stage companies that find it more difficult to raise investment because of the perceived risks for investors. The SEIS offers income tax relief to investors of 50% of the amount of their investment, together with some capital gains tax relief.

A total of two thousand companies raised funds through the SEIS in 2013/14 with a total of GBP 164 million raised. In the previous year 2012/13 a total of 1,155 companies raised investments of GBP 148 million. In 2013/14 almost 1,700 companies were using the SEIS for the first time, raising GBP 148 million in investment. The average investment per company in 2013/14 was almost GBP 82,000.

Since the start of the SEIS in 2012/13 almost 2,900 companies have raised funds through the scheme and have received investment of more than GBP 250 million.