We’re back with the latest instalment in our series of interviews on GBI Magazine, focusing on the results of the UK general election and the changes we can expect to tax-efficient investments with a Labour government. So far, we have spoken to YFM Equity Partners and Symvan Capital, and Green Angel Ventures, with more still to come.
Joining us this time is Ed Prior, Head of Investor Services at SFC Capital. Ed discusses the effects of a new Labour Government on SFC Capital, and reveals how he believes the new government will impact the SEIS and EIS markets.
1. How has the result of the general election affected your company?
Greater stability is always beneficial for the private markets. After a period of turbulence, we expect the renewed strength of a new Government to have a positive impact on making the UK and its early-stage startup ecosystem an attractive place to invest.
2.) Do you think the outcome of the UK election will impact tax policies on investments?
The new government has reaffirmed its commitment to both the EIS and SEIS schemes. This is great news for startups and UK PLC more generally. SEIS and EIS have catalysed a decade of dominance for the UK’s early-stage markets, making Britain one of the best places to start a business and attracting record levels of investment in startup innvoation.
3.) In what way(s) will the Labour government’s pension policy impact tax-efficient retirement savings?
With rumours of new taxes on pensions, protecting income from these additional liabilities becomes even more important. As a result, people are increasingly seeking opportunities such as SEIS and EIS to protect their pensions while also gaining exposure to the opportunities within Britain’s early-stage innovation ecosystem.
4.) How will the Labour government’s approach to wealth taxes influence high-net-worth individuals’ investment decisions?
It’s understood that the Labour government will seek to increase Capital Gains Tax and Inheritance Tax. This is already driving more high-net-worth individuals to schemes like SEIS and EIS for the first time. Under SEIS and EIS, high-net-worth individuals can recycle their gains and savings back into the UK’s innovation ecosystem while simultaneously avoiding tax liabilities.
Ed Prior leads the Investor Services team for SFC Capital, responsible for investor relations, fundraising, and SFC’s Angel Network. Before joining SFC, Ed served as a political advisor in various capacities, published multiple business reports in The Times and Sunday Times, and advised startups through equity fundraising campaigns.
