Could your business take advantage of tax breaks in the UK? ISME’s Finance Finder opens up a new market for Irish startups

Ian Hawkins, Head of Content, Swoop

You head a proudly Irish-owned and run business, but is it worth opening an overseas office to take advantage of the grants and investment marketplace in the UK? We believe that - for some - the answer is a strong “yes”, particularly for those seeking to raise equity investment for growth. This is thanks to the UK government’s SEIS and EIS schemes designed to attract investors.

The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are UK government initiatives designed to incentivise investment in early-stage companies through tax reliefs. Investors in SEIS and EIS-qualifying companies can receive tax relief of up to 50% and 30% of their investment, respectively. Additionally, capital gains on investments made through these schemes are exempt from tax if held for a certain period.

Irish businesses seeking to take advantage of the schemes must meet specific criteria to qualify:

• Be trading less than 3 years to be eligible for SEIS and less than 7 years for EIS schemes.

• Have plans to grow in the UK, thus supporting the UK economy.

The ISME Finance Finder powered by Swoop, is a business funding platform with a particular interest in helping Irish businesses access UK investment, because it is a journey Swoop have made themselves. An Anglo-Irish company from the outset, the company has offices in Dublin, London and Liverpool - as well as Sydney, Toronto and New York, thanks in part to the growth boost they built into their strategy.

Today, the ISME Finance Finder helps other Irish companies follow suit and access UK-based funding by directing them to the right investors and access to grant funding. Irish businesses can take advantage of UK grants and investment through the platform which simplifies the process of setting up branches in the UK.

What does a business need to do?

In order to qualify, a company needs to establish a permanent presence in the UK, though it does not have to be incorporated there. Your business must instead have a fixed place of business or a UK-based agent authorised to enter into contracts on its behalf. The company must also maintain its UK establishment for at least three years.

If you have an Irish holding company and want to qualify for SEIS and EIS, your parent company needs to have a UK-based permanent establishment. Also, investment needs to be taken into the parent company rather than the trading subsidiaries. Alternatively, if your Irish company has a UK holding company, the administrative and management functions of the company are sufficient to qualify, and the trading of subsidiaries doesn’t need to be carried out in the UK.

If this has piqued your interest, you’ll benefit from the range of financing options available through the ISME Finance Finder. The platform identifies suitable investors based on business profiles, and targets those that offer the best funding opportunities for the business. By doing this, you can quickly access financing options and start business operations in the UK.

If you have any further questions, please feel free to reach out to us at equity@swoopfunding.com OR visit the ISME Finance Finder.