The UK’s first Shariah complaint Seed Enterprise Investment Scheme (SEIS) fund has now been introduced by IFAAS – the Islamic financial consultancy –and Portillion Capital. The fund – called The Portillion Capital Shariah Compliant SEIS Fund enables participants to invest in a socially and ethically responsible way, by doing so in compliance with Shariah law.
Investors have been able to invest via the fund as of just over two weeks ago, and already the figures suggest that in excess of £1 million has been generated via investment from an investor base comprising 80% non-Muslims.
The IFAAS acts as the Shariah adviser to the fund, ensuring that compliance is maintained at all times, and in a statement, Farrukh Raza, Managing Director stated that “IFAAS is proud to remain at the forefront of the Islamic finance industry.”
Shariah compliant financial solutions are in huge demand across Europe, as ethical investments are sought by those looking to develop their business interests and diversify their portfolio in a legitimate manner.
The SEIS fund provides a gateway for the UK’s Muslim entrepreneur community, a sector which were previously unable to source vital start-up investment due to their religion. David Cameron highlighted this as a problem in 2013, and the Portillion fund provides the first solution.
The benefits of SEIS cover both entrepreneurs and investors, with the former having unbridled access to a huge investor-base, while not being held to ransom by high-interest bank loans.
From an investor perspective, the tax incentives on offer have encouraged thousands to seek investment in businesses that meet the strict criteria required to qualify for the scheme.
Investor benefits include:
- 50% income tax relief on up to £100,000 of investment.
- 14 % CGT relief
- 100% CGT reinvestment relief.
- Loss relief
- Inheritance Tax Relief
SEIS has grown in popularity hugely since its inception in 2012. It is now a staple for crowdfunding platforms, private investors, and a huge cross-section of some of the most potentially exciting start-ups in the UK.
The Shariah compliant SEIS fund looks set to become the catalyst for numerous similar models to be introduced. This will further broaden the appeal of SEIS, a scheme which has long been earmarked as having the potential to drive the UK’s economic resurgence.