Latest EIS figures released by HMRC

Figures released by HMRC show the Enterprise Investment Scheme raised £1.65bn of funding in the 2015/16 tax year.  The same report also shows Seed Enterprise Investment Scheme fundraising was £169m.

The figures show a drop of some £230m in EIS fundraising in 2015-16 compared to the previous year, though the figure raised of £1.65bn was still the second highest ever amount raised since EIS began in 1993. There was a reduction of £8m in SEIS fundraising, which fell to £169m.

These figures represent a decline compared against the previous tax year, however, Andrew Aldridge at Deepbridge Capital suggest this was to be expected and highlights the continuing upward trend.

Andrew Aldridge, Head of Marketing at Deepbridge Capital, commented;

“Although EIS fundraising of £1.65bn in 2015/16 was lower than the £1.8bn raised during the previous tax year. This was widely expected due to the removal of renewable energy projects qualifying for EIS.  This led to a skew of figures as some investors rushed to invest in the previous tax year, simultaneously both flattering the figures for 2014/15 and supressing figures for 2015/16.  Although a decline was expected, 2015/16 still represented the second highest EIS raise since its inception over twenty years ago.

“Cutting through these figures, I expect to see EIS fundraising to continue its upward trend.  There is increased understanding from advisers and investors that the Government is supportive of the Enterprise Investment Scheme as long as EIS funding is being directed, via legislative changes, towards those companies within ‘the Spirit of EIS,’ namely supporting innovation.  This attitude to (S)EIS investing is entirely in line with Deepbridge’s  approach to investing in highly innovative sectors where the team has considerable experience, namely technology and life sciences.”

Statistics from HMRC can be found at https://www.gov.uk