Crowd2Fund Receives Advanced Assurance From HMRC For EIS Tax Relief; Announces Investment Round Plans

UK-based crowdfunding platform Crowd2Fund announced on Monday it has been formally granted its Advanced Assurance from HMRC for the Enterprise Investment Scheme (EIS) tax relief. According to Crowd2Fund, the tax reliefs allow up to £12,000,000 can be invested into the growth of the crowdfunding platform under the scheme, from private investors or specialist EIS funds.

“For example, if you invest £20,000 in Crowd2Fund, investors will potentially be eligible to receive up to £6,000 from HMRC in the form of tax relief, depending on investors individual circumstance. Investors are sheltered from paying capital gains tax on any future returns and they could also be protected from losses, with up to £6,300 of loss relief. This means that their financial exposure to Crowd2Fund is potentially reduced to £7,700 while retaining the full value of their shares.”

Along with the tax relief news, Crowd2Fund announced plans for an upcoming investment round, releasing additional equity for its users. Crowd2Fund revealed that the round’s funds will be used to grow the platform further through the acquisition of a larger investor community, completion of more deals and improving the returns on the platform, by enhancing the recoveries and credit assessment processes. Crowd2Fund is also planning to expand internationally through the FinTech bridge program.

Crowd2Fund further explained that it has spent the last 12 months refining their business model, now backed up by years of data and evidence, to prove their plan to scale is feasible. The platform added:

“By reaching an investor community of 28,000 over the next few years, they will be able to lend more than £210m per year. Their proposition is different from other online lenders, who pool their funds and do not allow investors to choose the businesses they invest in. They also operate an Exchange for investors and allow businesses to reduce the cost of the credit by inviting their customers to invest or by offering tangible rewards.”

Sponsored Links by DQ Promote

Send this to a friend