UK’S first Shariah Compliant Seed Enterprise Investment Scheme (SEIS) announced by Portillion Capital and IFAAS
UK’S first Shariah Compliant Seed Enterprise Investment Scheme (SEIS)
announced by Portillion Capital and IFAAS
The ground-breaking, new ethical finance initiative – enabling investors to support small and start-up businesses – raises £1m within two weeks of its launch
IFAAS, the leading international Islamic finance consultancy, has joined forces with Portillion Capital, an independent financial services provider with a specialism in Islamic finance, and Seed Mentors, an independent investment and mentoring specialist in start-up businesses, to launch the UK’s first Shariah compliant Seed Enterprise Investment Scheme fund. The Portillion Capital Shariah Compliant SEIS Fund (SEIS Fund) is available to investors immediately; however, the first tranche of investment will close shortly, with more tranches to follow soon after.
The new SEIS Fund offers a compelling investment opportunity for UK-based individual investors; not only to invest in start-up and early stage businesses with high growth potential, but to do so in a Shariah compliant, socially responsible and ethical way. IFAAS acts as Shariah adviser to the fund, and ensures that investors can have total confidence that the Portillion Capital Shariah compliant SEIS Fund, and all of the investee companies, are Shariah compliant and will remain so throughout the investment period.
As the SEIS Fund appeals to both Muslim and non-Muslim investors alike, it is perhaps no surprise that in the two weeks since its official launch earlier this month, the Fund has generated over £1m, 80% of which has come from non-Muslim investors.
Farrukh Raza, Managing Director, IFAAS, said “IFAAS is proud to remain at the forefront of the rapidly changing landscape of Islamic finance industry with the launch of the new Shariah complaint SEIS Fund. Portillion is a leading player in Shariah compliant financial services, and shares our commitment to pioneering new and innovative Shariah compliant financial solutions. The fact that the SEIS Fund is the first of its kind in the UK is particularly significant, as the UK leads the soaring demand for Islamic finance in Europe, with the rising market for Sukuk as a contributing factor.”
The British Government launched the Seed Enterprise Investment Scheme in 2011 as part of its initiative to boost economic growth through the promotion of new enterprise and entrepreneurship. It is designed to help small, early-stage companies to raise equity finance by offering a range of tax reliefs to individual investors who purchase new shares in the SEIS fund investing in those companies. For investors, this means that the level of capital at risk is reduced, and for suitable companies with Shariah compliant business activities, this means that they will be able to develop and grow their business activities in line with ethical and Shariah standards.
Kamran Sattar, Chief Executive Officer and Co-founder of Portillion Capital said: “The Portillion Capital Shariah Compliant SEIS Fund aligns with the UK government’s strategies of promoting entrepreneurship and creating equal opportunities for all communities, and we are proud to have worked with IFAAS on such a robust financial product. Speaking at the World Islamic Economic Forum in 2013, David Cameron said that never again should a Muslim in Britain feel unable to start a business because they cannot get a start-up loan, due to their religion. We feel that, with the UK’s first Shariah compliant SEIS Fund, we have taken the lead in helping to make his vision become a reality.”
For every £1 that an Investor invests in the SEIS Fund they can receive 50p SEIS income tax relief and 14p capital gains tax relief, meaning that the net cost to the investor is 36p for every £1 invested. If the investment fails then maximum loss relief of 22.5p is also available which together with SEIS income tax and CGT relief is equivalent to 86.5p relief for every £1 invested.
For more information on the Portillion Capital Shariah Compliant SEIS Fund, please click here
Portillion Capital Shariah Compliant SEIS Fund is an investment fund where the capital may be at risk of loss. Any potential investor must seek advice from an Independent Financial Advisor. The tax reliefs offered in the SEIS scheme are subject to individual situation of the investor hence a professional advice from a tax advisor is recommended.
About Portillion Capital
“Portillion Capital Ltd is a privately held Independent Wealth Management firm, authorised and regulated by the FCA, no 597038.
Portillion Capital is proud to be dedicated to the provision of Shariah complaint and ethical financial solutions advising all types of investors. It is committed to pioneering authentic, new and innovative Shariah compliant and ethical financial solutions which enhance the quality and range of Shariah compliant ethical investment and financial products which are available in the market. As well as advising individual clients in areas of personal financial planning such as investments & savings, pensions, Islamic wills and inheritance planning; it also helps businesses set up ethical and Shariah complaint pension schemes for their employees and raise finance. “
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