Act now: ask to increase EIS tax relief to support small businesses & start-ups

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This petition is part of a wider campaign and linked to Vala Capital's petition. 

Small innovative businesses in the UK have been hit hard. If you can, please support this petition which calls on the government to act fast to help save them.

What are we asking the government to do?

We're asking the government to temporarily increase tax relief for EIS investors and relax some of the EIS qualifying rules. This could see up to £1bn committed to thousands of small companies and start-ups that have no other support available to them.

Why the Coronavirus Business Interruption Loan Scheme (CBILS) is not enough

The Coronavirus Business Interruption Loan Scheme (CBILS) cannot be accessed by many small and innovative companies as they do not meet all of the criteria. Companies must be deemed “viable” by the banks. However, most fast-growing technology businesses are loss-making, so would not qualify.

And yet these companies, some of the most innovative in the UK, contribute up to £196 billion to the U.K. economy every year.

Instead, they rely on funding from private investors who participate in government initiatives such as the Enterprise Investment Scheme (EIS).

EIS fills a funding gap that these businesses rely on

Historically, for every £1 invested by a member of the public via EIS, the government benefits with £4 back in tax revenue. The EIS programme has raised over £20bn to date, helping over 29,000 businesses. 

Disruptive start-ups are key for UK growth, they are key for a recovery from the CoVid-19 crisis. It is clear that the government-backed EIS fills a funding gap that these businesses rely on.

But the CoVid-19 tragedy has, unsurprisingly, seen investor appetite fall off a cliff. As a result, the very start-ups that can help aid post virus recovery are failing quickly - because they simply cannot access capital.  

Please support this petition

We are asking for you to please support this petition which calls on the government to increase the EIS initiatives available to small company investors and hand start-ups a lifeline during the coronavirus crisis. They, in turn, will be the lifeblood of our future economy.

By unleashing public support for small innovative businesses through EIS relief we can very significantly reduce the burden on the public purse; further supporting future economic stability.

The EIS Association and its members wrote to the government on Friday 20th March recommending a temporary increase in income tax relief to 60% for those investors that support small businesses now. Vala Capital went further, writing to the Prime Minister and the Chancellor to request 80% income tax relief to stimulate investor support. If adopted this initiative could see up to £1bn committed to thousands of small companies that have no other support available to them.

Wealth Club is now joining Vala Capital to let the voice of EIS investors be heard. 

Thank you for your support.  Stay safe.