The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are among the most powerful tools available to UK start-ups for attracting early-stage investment. They provide investors with substantial tax reliefs, significantly reducing the risk of investing in early-stage businesses.
We are market leaders in SEIS and EIS advice. We assess eligibility, obtain advance assurance from HMRC, issue tax relief certificates, and advise on the ongoing compliance requirements. For investors, we advise on income tax relief, CGT exemption, deferral relief, and reinvestment relief. If your business is not eligible for SEIS or EIS, we advise on alternative funding structures.
FAQs
SEIS investors receive income tax relief of 50% on the amount invested, up to a maximum of £200,000 per tax year. They also benefit from Capital Gains Tax exemption on any gain when they sell SEIS shares, and loss relief if the investment fails. The reliefs make SEIS one of the most generous investment schemes available anywhere in the world for early-stage investors.
EIS investors receive income tax relief of 30% on the amount invested, up to £1 million per tax year, or £2 million if invested in knowledge-intensive companies. They also benefit from CGT exemption on gains, CGT deferral relief, and loss relief. EIS shares must be held for at least three years to retain the reliefs.
To check SEIS eligibility, confirm: 1. The company has been trading for less than three years. 2. There are fewer than 25 full-time equivalent employees. 3. Gross assets do not exceed £350,000. EIS has higher thresholds and slightly different conditions. The qualifying trade must also not be an excluded activity such as financial services or property development. We assess eligibility quickly and manage the advance assurance process with HMRC.
Advance assurance is an application to HMRC confirming that your company and the proposed investment are likely to qualify for SEIS or EIS relief. It is submitted before shares are issued and gives investors confidence that their relief is likely to be available. We handle the full advance assurance process, including preparing the application, liaising with HMRC, and responding to any queries. We achieve a 99% success rate on first submission.
Yes. A company can raise SEIS and EIS investment simultaneously, provided it meets the conditions for both schemes. Importantly all SEIS monies should be received and SEIS shares issued at least one business day prior to the issue of any EIS shares. Care must be taken to ensure that the gross assets (which include any non-SEIS investment monies) do not exceed £350,000 when the SEIS shares are issued. We advise on the correct structure to make sure both sets of reliefs are preserved.