OncoBone Ventures Receives HMRC Adcance Assurance for SEIS/EIS
OncoBone Ventures, a UK-based biotech start-up seeking to develop novel therapies for cancer patients with currently incurable bone metastases, is pleased to announce that it has received Advance Assurance from HMRC that investments in the Company can qualify for tax relief under the Seed Enterprise Investment Scheme (SEIS)/Enterprise Investment Scheme (EIS).
The EIS and SEIS are government initiatives providing a tax incentive to individuals investing in early stage growing companies.
Launched in 1994, the EIS makes investing in shares in early-stage businesses particularly attractive and tax efficient for the investor. When an early-stage business is EIS-qualifying, investors can claim a number of tax reliefs alongside their investment, including upfront income tax relief, tax-free capital gains, and loss relief on each investment that returns less than you put in.
Dr. Jussi Halleen, CEO of OncoBone Ventures commented: “Securing successful and speedy Advance Assurance from HMRC, on the back of clear and concise advice and considering the international collaborative nature of our business, is a tribute to the knowledge and experience of the team at Philip Hare & Associates LLP who assisted us in achieving this feat”.
“OncoBone Ventures is committed to both creating novel ground-breaking therapies for the benefit of cancer patients and to delivering significant shareholder return for investors. Having qualified for the government SEIS & EIS initiatives, we believe the attractive and significant reliefs on offer for investing in OncoBone Ventures will act as a significant catalyst and incentive for investors to back our work to develop novel therapies for cancer patients with currently incurable bone metastases”.
Alison Caulfield of Philip Hare & Associates LLP added, “We were pleased to advise OncoBone Ventures with respect to the SEIS/EIS and we hope that the investments made will assist OncoBone Ventures in their efforts to improve the health of cancer patients.”
The main tax benefits of EIS investment are 30% income tax relief on amounts subscribed for shares in qualifying companies and, provided EIS requirements are maintained for at least three years, complete tax exemption on gains realised when shares are sold. Added to this is further income tax relief for losses on unsuccessful companies, deferral of capital gains tax on gains from sale of other assets, and relief from inheritance tax after two years ownership, making EIS investment extremely tax efficient.