The UK government is aware of the need for small businesses to obtain funding in their early years. For some time there has been an “equity gap” in the UK, meaning that it is more difficult for smaller companies, including start-up companies developing potentially important products in high technology areas, to receive adequate funding. One reason for this is the perception by investors that these companies are a particularly high risk investment and that it is safer to invest in larger, more established companies.
The government has encouraged the involvement of private investors in funds to invest in small companies and has introduced measures to guarantee loans made to smaller companies. There are also specific tax incentives for investors in new businesses in the UK and these are outlined below.
To read the full, original article click on this link: Funding a new business: Tax incentives in the UK - by Peter Hann - Helium
Author: Peter Hann
