There are many tax reliefs and incentives available for businesses and those who invest in them. Not everyone is aware of them but there can be significant government funded schemes available to secure and encourage finance for new or growing businesses. Don't forget the increasing diversity of sources of finance to consider, such as crowd-funding and peer-to-peer lending, as well.
If your business meets certain criteria, it may also qualify for help with business rates or tax relief for research and development. We can help and advise with all of these so please contact us if you wish to discuss any of the opportunities below and find out if you're eligible:
Business rate reliefs
Some properties are eligible for discounts on their business rates. This is called ‘business rates relief’. Reliefs that are not automatically applied by local councils include:
- small business rate relief
- rural rate relief
- charitable rate relief
- enterprise zone relief
- retail relief
There are currently 24 Enterprise Zones across the UK and they support new businesses through a range of incentives.
The Seed Enterprise Investment Scheme (SEIS)
This aims to encourage investment in small and early stage companies by reducing the risk to investors of investing in these types of companies. This scheme offers income tax relief of 50% and CGT relief.
Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000.
Annual Investment Allowance
Currently stands at £500,000. This provides a 100% allowance for most fixed assets purchased by a business.
A tax relief designed to allow the cost of certain of your company or organisation's assets to be written off against its taxable profits.
Enterprise Investment Scheme
Helps small companies raise finance by offering tax relief to investors who buy new shares in their companies. This scheme offers income tax relief of 30% and CGT relief.
Venture Capital Trust (VCT) Scheme
Designed to help smaller companies raise finance by offering a range of tax reliefs to investors who invest in VCTs, who in turn onward invest or lend to small and medium sized businesses. This scheme offers income tax relief of 30% and CGT relief.
Capital Gains Roll-over Relief
You may be able to delay paying Capital Gains Tax if you either sell (‘dispose of’) some business assets or use all or part of the proceeds to buy new assets. This relief means you won’t pay any tax until you sell the new asset.
Research and development tax credits
Small businesses can get 225 per cent tax relief on their research and development spending either as a reduction in Corporation Tax or as cashback.
Enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions and certain other innovations.
Social Investment Tax Relief
This provides a range of income and capital gains tax reliefs which can be claimed by individual investors for investments they have made in social enterprises, with a view to helping people and communities. It is in place for investments made or capital gains arising in the period from 6 April 2014 to 5 April 2019
Tax reliefs for the creative industries
A group of five corporation tax reliefs that allow qualifying companies in the creative industries to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits.
When an entrepreneur sells or closes their business, they need only pay ten per cent Capital Gains Tax on any qualifying profits.