Columnist

Unlocking investment potential before year end

As the financial year draws to a close, business owners and investors are taking stock, reviewing performance, refining strategy and considering how best to deploy capital.

It’s also a critical window for tax planning, and opportunities that deserve far more attention are the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS).

These Government-backed schemes were designed to encourage investment into ambitious growth-focused technology businesses.

Collectively, they have driven more than £34 billion investment into over 59,000 UK companies, supporting hundreds of thousands of jobs and offering significant advantages for investors and businesses.

From an investor perspective, SEIS provides 50 per cent income tax relief on qualifying investments, alongside capital gains tax (CGT) advantages and loss relief, helping to significantly reduce risk.

It can also be used as part of broader CGT planning, allowing investors to offset gains by reinvesting into technology businesses.

For these companies, SEIS can be a powerful tool for attracting funding from angel investors.

Through the advance assurance process, businesses can gain early confirmation from HMRC that they qualify for the scheme, providing confidence to potential investors and strengthening their fundraising position.

And this matters in regions like the North East, where access to early-stage capital can be more limited than in London and the South East.

Up to 65 per cent of SEIS and EIS investment is concentrated in London and the South East, leaving regions such as the North East underrepresented.

There is no shortage of ambition; on the contrary, the region is home to a growing network of experienced angel investors, particularly within the technology sector.

The challenge is awareness.

Many founders simply don’t realise what support exists, or how to access it.

At Blu Sky, around half of our client base consists of technology businesses, and many have already benefited from SEIS or EIS as part of their growth journey.

Our focus is on supporting businesses, guiding them through the advance assurance process, managing the technical requirements and ensuring everything is structured correctly.

We also play an active role in connecting founders with the right angel investors, helping to bridge the gap between capital and opportunity.

This hands-on approach is particularly valuable given the perceived complexity of SEIS.

Without the right guidance, founders and investors can be deterred by the administrative and compliance requirements.

Beyond our direct client work, we also collaborate with accountancy firms across the North East and nationally.

We support other advisers and their clients in navigating SEIS and EIS, ensuring more businesses can access the funding they need.

There is a clear opportunity to do more.

The North East has the talent, the ideas and the investor base, but awareness of angel investment and schemes like SEIS still lags behind other regions.

Closing that knowledge gap could unlock significant growth across the regional economy.

With the financial year end fast approaching, now is the time to act.

Jon Dudgeon is co-founder and chief executive of North Shields, Newcastle and London-based accountancy and business advisory firm Blu Sky

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