Small business owners could potentially benefit from £525m in tax relief this year because of government legislation, a report has shown.
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are expected to significantly improve the financial wellbeing of SMEs this year, with prospective increases up to 25 per cent over last year’s gains.
According to Albion Ventures, more than 68 per cent of Independent Financial Advisers believe the economic recovery has made smaller businesses an attractive investment opportunity.
The tax breaks awarded by the government could be viewed as a reward for the large amount of income and employment that SMEs have generated in recent years. The European Commission’s SME Performance Review estimates that the Gross Value added of SMEs is €531 billion, or 51% of the UK economy, and that the sector has also added more than 700,000 jobs since 2010.
‘‘This is an exciting time for young UK businesses with ambitions to grow. With favourable economic tailwinds and a supportive investor community small firms have a tremendous window of opportunity to make a mark,’’ said Patrick Reeve, Managing Partner at Albion Ventures