SEIS AND EIS
The government’s SEIS and EIS investment programmes are designed to support the UKs generation of innovation by the introduction of SEIS and EIS. They were introduced to make investment in both SEED and SME’s a more attractive propositions by offering investors generous tax breaks to invest in new businesses ventures. They invest, you get the funding that you need and the investor benefits from the Tax offset achieved by the scheme.
Frequently asked questions
What is the Seed Enterprise Investment Scheme (SEIS)?
The Seed Enterprise Investment Scheme (SEIS) is a UK government initiative that supports small and early-stage companies raise equity finance. It offers tax offset to individual investors who purchase new shares in those companies.
When was the initiative first introduced?
Introduced in 1994, the Enterprise Investment Scheme (EIS) is one of the three tax-based venture capital schemes. It is designed to help smaller higher risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new full-risk ordinary shares in those companies.
What is the Enterprise Investment Scheme (EIS)?
The Enterprise Investment Scheme (EIS) is another UK government programme aimed at helping medium-sized, high-risk companies raise funds. Like SEIS, it offers tax relief to investors who buy new shares in these companies.
How do SEIS and EIS differ?
SEIS is designed for very early-stage companies, while EIS targets slightly more established businesses. SEIS offers higher tax relief up to 50% but has lower investment limits of £250,000 compared to EIS which is £1 million.
Who can qualify for SEIS and EIS?
For SEIS, companies must be less than two years old and have fewer than 25 employees and gross assets less than £350,000. For EIS, companies can be up to seven years old and have fewer than 250 employees and gross assets less than 15 million.
Please visit our ‘Do I qualify’ section to see if you could be eligible
How much does Advance Assurance cost?
While the application itself is free of charge we would recommend seeking professional guidance to increase your chances of success and ensure you have provided all information that is required.
Click here for application support
What are the tax benefits of SEIS and EIS?
Both SEIS and EIS offer income tax offset, capital gains tax exemption, and loss relief along with Inheritance tax exemption. SEIS offers higher percentages of tax offset compared to EIS.
How can I apply for SEIS or EIS?
To apply, companies need to submit specific forms and documentation to HMRC for approval. It’s important to follow the guidelines carefully to avoid common pitfalls during the application process.