Interactive entertainment starts-ups urged to take advantage of new Seed Enterprise Investment Scheme
11 April 2012 - London, United Kingdom – Games and interactive entertainment trade body, Ukie, today calls on UK games developers to take advantage of the Government’s new Seed Enterprise Investment Scheme (SEIS).
SEIS is designed to help small, early-stage businesses raise money by offering a range of tax reliefs to individual investors. Each investor can input up to £100,000 in a single tax year through the SEIS. Investors can then receive income tax relief worth 50 per cent of the amount they invest – making investing in start-up businesses a considerably more attractive proposition. It can be applied to investments made on or after 6 April 2012.
Several criteria have to be met by the company receiving the investment. The company must:
- have 25 or fewer employees
- have no more than £200,000 in assets at the time the investment is made
- be UK-based
- be undertaking a new business (be a start-up)
- not be listed on any recognised stock exchange
- not have previously raised money under the Enterprise Investment Scheme or Venture Capital Trust scheme
The company must also not be owned by the investor which means people cannot use SEIS to gain relief for investing in their own businesses.
Each company can get a maximum of £150,000 worth of funding through the SEIS.
Ukie has produced an SEIS fact sheet giving further advice on the new scheme for games and interactive entertainment businesses, that can be accessed here.
Ukie CEO, Dr Jo Twist said: “Getting funding can be a real barrier for many games and interactive entertainment businesses at the start-up stage. The new Seed Enterprise Investment Scheme helps make funding these exciting new businesses more attractive to would be investors.
“This year we will be working hard to raise awareness of this scheme, as well as other ways small companies can access finance, and the growth potential of UK games businesses to the investment community. We recommend that any games or interactive entertainment start-ups that are looking for money, and fit the qualification criteria, should make sure that they discuss SEIS with any potential investors.”
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Ukie also actively promotes other ways that interactive entertainment businesses can take advantage of funding and tax reliefs, including offering its members advice on R&D tax relief – please contact firstname.lastname@example.org for more information on SEIS and R&D tax credits.
For all press enquiries, please contact the UKIE press office on T: +44 (0)20 7534 0582 or E: email@example.com
The Association for United Kingdom Interactive Entertainment or UKIE is a trade body that represents the whole of the UK’s video games and wider interactive entertainment industry. Founded in 1989 (and formerly known as ELSPA), UKIE’s membership includes games publishers, developers and the academic institutions that support the industry.
UKIE works with government to champion a range of issues including age ratings, education and skills, tax incentives and protecting intellectual property rights. It also works with the media to ensure true and accurate representation of the sector by raising awareness of the industry’s positive economic contribution and the societal benefits of gaming to policy makers, regulators and consumers.
One of UKIE’s key roles is to support its members by providing them with key market information, promoting careers and offering the business support services, training and best-practice knowledge to enable them to operate most effectively.
In addition, UKIE works with GfK Chart-Track to compile weekly, monthly and annual retail charts and sales reports for the UK market.