South Molton Street Sapphire Capital Partners LLP

About Sapphire.

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Sapphire by numbers...

 

250+ successful SEIS & EIS HMRC applications.

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4 new funds.

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3,500+ blog readers.

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14 eBooks published.

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Multiple awards.

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Sapphire Capital Partners LLP Awards - EISA awards, Investment Week awards

 
Let us take the hassle out getting your company approved for SEIS and / or EIS...

 
We specialise in obtaining SEIS, EIS and SITR advance assurance from HMRC.  We have done too many to count. We can draft the investment documents and apply to HMRC on your behalf.
SEIS EIS and SITR

Sapphire can:
  • Quickly obtain the HMRC advance assurance for SEIS, EIS and SITR companies.
  • Draft the investor documents.
  • Ensure your company is investment ready.
  • If required, advise on the corporate structure.

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We can then help you raise money...

 
Raising money for smaller companies can be very challenging, no matter what sector you are in.  With increasing numbers of companies obtaining SEIS and EIS advance assurance, investors have an increasing choice of companies to invest in. You need to ensure your company is prepared and investment ready.
Raising money for SEIS and EIS

Sapphire can:
  • Obtain your HMRC advance assurance for SEIS, EIS and SITR companies.
  • Draft the investor documents.
  • Ensure your company is investment ready.
  • Help you to raise capital.

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We might invest ourselves...

 
Sapphire manages several funds which seek to invest in people and companies that make a difference.
Investing in SEIS and EIS companies

Sapphire will:
  • Assess if any of the funds that Sapphire manages is suitable for your company.
  • Make sure you are investment ready.
  • Potentially invest in your company.
  • Help you to raise capital from a variety of sources.

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We also provide other services...

 
We also specialise in R&D Tax Credits, writing business plans and information memorandums.
Sapphire other services such as R&D Tax Credits

Sapphire can assist with:
  • R&D Tax Credits.
  • Crowdfunding.
  • Section 21 sign offs.
  • Information Memorandums and Business Plans.
  • Launching and managing property funds.

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We can act as a Financial Conduct Authority ("FCA") approved investment manager for funds...

 
If you need an FCA regulated manager in the UK then Sapphire can help.
FCA Investment Manager

Sapphire is authorised by the FCA to:
  • Advise and arrange deals in investments.
  • Advise on P2P agreements.
  • Agree to carry on a regulated activity.
  • Establish, operate or wind up a collective investment scheme.
  • Manage an unauthorised Alternative Investment Fund (AIF).
  • Deal in investments.
  • Manage investments.

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You Ask, We Answer...

 
[fa icon="plus-square"] What are the tax advantages of investing in SEIS and / or EIS?

Below is a general summary:

Qualifying investors who qualify for SEIS may benefit from: 

  • 50% income tax relief on amount subscribed (up to a maximum annual investment of £100,000);
  • 100% inheritance tax relief after two years (provided the investment is held at the time of death);
  • 50% Capital Gains Tax exemption for chargeable gains reinvested (up to the maximum subscribed);
  • 100% tax free growth (provided income tax relief has been given and not withdrawn and disposal takes place after the end of the SEIS Three Year Period);
  • Loss relief (a loss on shares disposed of can be set against an Investor’s income or capital gain to reduce tax); and
  • Business Investment Relief (for certain UK resident non-UK domiciled Investors). No taxable remittance for foreign income or gains brought into the UK from offshore for qualifying investments for certain UK resident non-domiciled investors.

Qualifying investors who qualify for EIS may benefit from:

  • 30% EIS income tax relief on amount subscribed (up to a maximum investment of £1 million for the 2016/2017 tax year and/or £1 million carried back to 2015/2016 tax year);
  • 100% inheritance tax relief after two years (provided the investment is held at the time of death);
  • EIS Capital Gains Tax deferral for the life of the investment on amount subscribed;
  • 100% tax free growth (provided income tax relief has been given and not withdrawn and disposal takes place after the end of the EIS Three Year Period);
  • Loss relief (a loss on shares disposed of can be set against an Investor’s income or capital gain to reduce tax); and
  • Business Investment Relief (for certain UK resident non-UK domiciled Investors). No taxable remittance for foreign income or gains brought into the UK from offshore for qualifying investments for certain UK resident non-domiciled investors.

Please note that this is only a condensed summary of the taxation legislation and should not be construed as constituting advice which a potential investor and / or company should obtain from their own investment or taxation adviser. The value of any tax reliefs will depend on the individual circumstances.

Please also note that investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. Any investments are targeted exclusively at investors who understand the risks of investing in early stage businesses and can make their own investment decisions. 

[fa icon="plus-square"] What are the SEIS and EIS rules which permit a company to receive investment?

For EIS purposes, the value of the gross assets of the company and any subsidiaries must not exceed £15 million immediately before the issue of shares and £16 million immediately afterwards. The maximum EIS fundraising per company is restricted to an all-time maximum of £12,000,000 (£20,000,000 for “knowledge-intensive” companies). Generally, companies older than seven years cannot receive EIS monies. The relevant shares must be issued to raise money for the purpose of a qualifying business activity so as to promote business growth and development. Employing money raised on the acquisition of an interest in another company, which is or becomes a 51% subsidiary of the company, a trade or goodwill or intangible assets employed for the purposes of a trade does not amount to employing money raised for the purpose of a qualifying business activity.

Subject to certain exceptions, the maximum EIS fundraising per company is restricted to £5 million per year and a lifetime limit of £12 million. The maximum number of full-time employees (or full-time equivalent) in the company at the time of investment is restricted to fewer than 250.

For SEIS purposes, the value of the gross assets of the company and any subsidiaries must not exceed £200,000 immediately before the issue of shares. The maximum SEIS fundraising per company is restricted to an all-time maximum of £150,000 and the maximum number of full-time employees (or full-time equivalent) in the company at the time of investment is restricted to fewer than 25.

It is not possible for a company to qualify for SEIS relief if the company has previously issued shares on which EIS relief has been claimed, or has issued shares to, or received an investment from, a venture capital trust. If a company issues shares on which SEIS relief is claimed, it is possible for it to issue subsequent shares on which EIS relief may be claimed.

Most types of trades are qualifying trades for EIS and SEIS purposes but the following are excluded:

  • Dealing in land, commodities or futures, or in shares, securities or other financial instruments;
  • dealing in goods otherwise than in the course of an ordinary trade of wholesale or retail distribution, or acting as a wholesaler or retailer of goods of a kind which are collected or held as investments if stock is not actively sold;
  • banking, insurance, money lending, debt factoring;
  • hire purchase financing or other financial activities;
  • leasing, except certain lettings of ships, or receiving royalties or licence fees (subject to certain exceptions, most particularly in relation to self-generated intellectual property);
  • providing legal or accountancy services;
  • farming and market gardening;
  • holding, managing or occupying woodlands or forestry or timber production;
  • property development;
  • shipbuilding;
  • producing coal and/or steel;
  • operating or managing hotels or similar establishments;
  • operating or managing nursing homes and residential care homes;
  • generation or export of electricity or power;
  • production of gas or fuel; and
  • providing services to a trade consisting of any of the above carried on by a “connected person.”

For EIS the trade of the company must generally be less than seven years old at the time of investment.

Companies “in difficulty” cannot receive SEIS or EIS investment. In practice, HMRC accept that a company will not be treated as “in difficulty” within three years of its formation or if it is able to raise funds from existing shareholders or the market.

Shares only qualify for SEIS or EIS relief if they are ordinary shares which do not, at any time during the three year EIS or SEIS period, carry any present or future preferential right to dividends (other than to certain fixed rate non-cumulative dividends) or to an company’s assets on its winding up, or any present or future right to be redeemed.

Although it is possible for activities of the company to be carried on anywhere in the world, the company that issues the shares must have a “permanent establishment” (broadly, a taxable presence) in the United Kingdom.

Please note that this is only a condensed summary of the taxation legislation and should not be construed as constituting advice which a potential investor and / or company should obtain from their own investment or taxation adviser.

[fa icon="plus-square"] Do you have any funds that would invest in my company?
Possibly - but very much depends on the what stage your company is at and what sector you are in. Feel free to contact us directly to find out. Please email us at info@sapphirecapitalpartners.co.uk
[fa icon="plus-square"] I have an idea for a SEIS / EIS fund. How do I set one up?
We can help you do this. Email us at info@sapphirecapitalpartners.co.uk 
 
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Read what some of our clients are saying about us...

 

"Finding experienced advice on the SEIS process was proving very thin on the ground. Sapphire, however, immediately understood our requirements, the time constraints we were bound by and enabled us to get underway straight away. Their service has been excellent and I have no problem recommending them highly."

Guy Bucknall CEO, Gymik Limited

Guy Bucknall
"Working with Sapphire Capital was a most valuable experience. We did not simply get the best financial advice; we got insightful mentorship as well, which for a startup is better than gold."

George Zarkadakis

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"Sapphire demystified the whole process of applying for SEIS/EIS advance assurance, were incredibly responsive to any requests we had, and provided a first class service that I have been able to heartily recommend to other technology startups that I work with." Ronan Cunningham, BrainWaveBank Limited."

Ronan Cunningham BrainWaveBank Limited

Ronan Cunningham
"Sapphire Capital knows the EIS and SEIS investment market. I value their personal service and professionalism. I would highly recommend them."

Peter Burnside Managing Partner, BDO

Peter Burnside


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