Make your raise more attractive to investors
SEIS and EIS can give eligible investors valuable tax reliefs. For a investor, that can make the risk of backing an early-stage business feel more manageable.
What are SEIS and EIS?
They are government-backed schemes designed to encourage investment into young, growing UK companies. Your company raises money by issuing new shares. If the rules are met, the investor may claim tax relief.
SEIS – for very early-stage companies
Raise up to
£250,000
EIS — for growing companies
Raise up to
£10 million a year
Eligibility rules and lifetime limits apply.
Why Investors are Interested
In simple terms, SEIS and EIS are government-backed tax relief schemes that can make investing in early-stage businesses more attractive to investors. That can help your business stand out when raising funding.
50% SEIS
Income tax relief
30% EIS
Income tax relief
Potential tax-free growth
When qualifying shares are sold
Loss relief
May reduce the impact if the investment performs badly
These benefits do not remove the investment risk, but they can make backing an early-stage company more attractive.
Why founders care
Make the opportunity more attractive
Help investors balance early-stage risk
Raise capital to fund your next phase of growth
Open the door to more tax-efficient investors
The relief belongs to the investor-but it can help your company compete for their attention.
What is Advance Assurance?
Before you issue shares, you can ask HMRC to review your fundraising plans. HMRC looks at your company, its trade, the shares you intend to issue, how much you want to raise and how the money will be used.
- If HMRC is satisfied, it sends you a letter saying that the proposed investment is likely to qualify for SEIS or EIS, based on the information you provided.
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Prepare your business plan and fundraising details
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HMRC reviews the proposed company and share issue
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Show the Advance Assurance letter to investors
Why it matters to investors
You can show the letter to potential investors. It gives them greater confidence that they may be able to claim the tax reliefs, helping to reduce one of the uncertainties around investing in an early-stage company.
Important: Advance Assurance is not final approval or a guarantee. The company, share issue and investor must still meet the scheme rules, and material changes can invalidate the assurance.
What shares does the investor receive?
- Qualifying shares: Full-risk ordinary shares, fully paid in cash when issued.
- Clear ownership: Agree the share price, ownership percentage and investor rights before investment.
- Scheme-compliant terms: No redemption rights, preferential rights to assets or arrangements protecting their capital. Dividend rights are restricted.
- Potential returns: Investors may benefit from dividends or selling their shares, but returns are not guaranteed.
Have your share terms checked by a solicitor or tax adviser before issuing shares.
Could My Company Qualify?
This will give you an initial indication only. It is not tax advice or HMRC approval.
Learn, prepare, get seen and feel supported.
Everything you need to learn about SEIS and EIS, build your profile, get in front of relevant investors and join a community that’s here for you.