SEIS / EIS Advance Approval 📢
A huge milestone for Joyall and a great way for UK tax payers to invest at a greatly reduced risk.
Us folk at Joyall have some fantastic news that we are very excited to share with the world: HMRC have given us advance assurance that we will qualify for Startup Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) tax relief!
This is a huge milestone that we have been working towards and are so happy to have achieved. Having the material we sent off as part of the application – like our business plan and financial forecasts – ratified by HMRC in this way is amazing, and shows we’ve got what it takes to support the UK economy.
The advance assurance just means that we haven’t yet issued the SEIS/EIS shares which would qualify for the tax relief. But when we do this for our upcoming fundraising rounds, HMRC will give us the formal approval, based on what we’ve told them so far.
So why is this such great news?
Besides the kudos that we get from having this seal of approval from HMRC, SEIS tax relief is a substantial incentive for our first investors to invest in us. Those who meet HMRC’s requirements can save a whopping 64p out of every £1 invested through various tax breaks, including:
50% income tax relief – you get back half of what you invest
No Capital Gains Tax at all on the shares
It can half your capital gains liability from your other investments
And, fingers crossed neither of these come into play with our shares, but you can offset any potential losses against your income tax bill, and also pass on your investment free of inheritance tax (potentially saving another 40p per £1 invested).
We are allowed to take up to £150k of investment which qualifies for SEIS tax relief, although individual investors can only invest a max £100k in SEIS shares every year.
Once all our SEIS shares are snapped up, we’ll start issuing the EIS ones. We’re allowed to take a total of £12m of investment which qualifies for EIS relief, and a maximum of £5m per year.
EIS is very similar to SEIS tax relief. The differences are that the income tax relief is lower at 30%, and instead of halving your capital gains liability on other investments, you can use EIS to defer paying capital gains tax instead.
Ready to help us grow?
If you’re as stoked about this news as we are and you’re thinking of investing to help take us to the next level, then we’d love to hear from you. Please drop Lilian Filips, our VP of Investor Relations, a message via email at firstname.lastname@example.org.