HMRC Key Statistics – May 2018

At the back end of May, HMRC released the much anticipated first estimates on both the number of companies raising funds and the number of subscriptions and the amounts raised through EIS and SEIS for 2016-17.
It’s important to note that at this stage, the numbers are exactly that. Estimates. Releasing the data in May, only 2 months after the end of the tax year, means there are a lot of applications still in HMRC’s system and we expect to see upward revisions at next year’s data release (HMRC are moving away from releasing the data at two points in the year to an annual release).

So, what are the headlines?

Below are some key points with our commentary alongside:

Overall, figures are largely holding firm year on year. 2017-18 however should see a seismic shift. The new rules introduced at the Budget 2017 close some EIS investment opportunities and open up others. How will fund managers react to this? And more importantly, how will investors react to this? Traditional financial planner clients have been weaned over he past 4 or 5 years on capital preservation type EIS deals. We have now entered a “Growth only” stage so will investors immediately feel comfortable trading perceived lower risk, capital preservation deals for perceived higher risk, growth deals? Time will tell but certainly there is a lot of work for all in the industry to do to educate financial planners as to what is happening, why and how EIS can still be a very important part of their client’s diversified portfolio. Certainly at EISA, we are not complacent and our strong belief is that if we want EIS and SEIS to grow and see greater inflows of investments from a broader base of investor then we need to work together to engage with the financial planning community to make this happen.

To see the full HMRC EIS and SEIS statistics report click here

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