Autumn Statement comment - encourage finance for business
Update: further to the 2017 Autumn Budget being announced, we published a post looking at the impact on property and homebuilders, tax efficient investing (specifically the EIS), and Angel investors.
SEIS and EIS tax breaks will stimulate finance for business
Welcoming the Chancellor’s statement that he was creating a tax environment in which investment would not be discouraged, Norman Peterson, co-founder of equity based crowdfunding platform GrowthFunders, which is due to be launched in Q4 2013, said more could be done:
“Entrepreneurs and small businesses are the lifeblood of the UK economy but the prevailing economic climate, coupled with the reduced accessibility of traditional funding sources, is conspiring to stifle start-ups and growth businesses.
“Alternative sources of finance, including crowdfunding and peer-to-peer lending, are gathering pace and have the potential to significantly contribute towards business growth and job creation.
It is essential that the tax system, particularly SEIS and EIS schemes, are extended to channel equity finance into the early stage investment marketplace".
Crowdfunding - a professional environment is crucial
“Clear government policy and backing will be instrumental in facilitating this and we would like to see a range of measures which enable this marketplace to mature in a professional manner. Crowdfunding has the potential to become mainstream and could prove to be a valuable source of match funding to unlock more traditional finance solutions and stimulate economic growth.
Where the US leads, we must look to overtake...
“The USA has taken the necessary steps to facilitate and stimulate economic growth. The JOBS Act (Jumpstart our Business Start-ups) has been passed and comes into force in January 2013.
The Act gives clear guidance on how crowdfunding can directly impact and support business start-ups and growth.
The UK needs to take a lead from the US to create and facilitate the same opportunities for our domestic market, if not we run the risk of being left behind in this innovative and rapidly emerging marketplace.”