SEIS AND EIS TAX CALCULATORS
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.
SEIS TAX CALCULATOR
Your Details
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Estimated Performance: SEIS V STANDARD INVESTMENT
| Data | SEIS | Standard |
|---|---|---|
| Total Investment | £0.00 | £0.00 |
| Proposed return percentage | 0% | 0% |
| Tax rate | 0% | 0% |
| Income tax OFFSET | £0.00 | £0.00 |
| Loss relief insurance | £0.00 | £0.00 |
| Total level of risk | £0.00 | £0.00 |
| Percentage of risk against investment | 0% | 0% |
| Proposed return | £0.00 | £0.00 |
| Gain achieved | £0.00 | £0.00 |
| Capital gain bill | £0.00 | £0.00 |
| Total ROI after tax | £0.00 | £0.00 |
PLEASE NOTE: This calculator provides a rough guide and makes some asumptions, it does not replace professional advice. Taxation offsets can change throughout the lifetime of an investment. Investors are encouraged to seek advice from a qualified professional before making any investment. To understand more about these types of investments and how they can benefit you please contact your accountant or click here to learn more.
EIS TAX CALCULATOR
Your Details
￡
Estimated Performance: SEIS V STANDARD INVESTMENT
| Data | SEIS | Standard |
|---|---|---|
| Total Investment | £0.00 | £0.00 |
| Proposed return percentage | 0% | 0% |
| Tax rate | 0% | 0% |
| Income tax OFFSET | £0.00 | £0.00 |
| Loss relief insurance | £0.00 | £0.00 |
| Total level of risk | £0.00 | £0.00 |
| Percentage of risk against investment | 0% | 0% |
| Proposed return | £0.00 | £0.00 |
| Gain achieved | £0.00 | £0.00 |
| Capital gain bill | £0.00 | £0.00 |
| Total ROI after tax | £0.00 | £0.00 |
PLEASE NOTE: This calculator provides a rough guide and makes some asumptions, it does not replace professional advice. Taxation offsets can change throughout the lifetime of an investment. Investors are encouraged to seek advice from a qualified professional before making any investment. To understand more about these types of investments and how they can benefit you please contact your accountant or click here to learn more.
WHAT IS SEIS?
If you’re an investor or an entrepreneur seeking funding, understanding these schemes can be a game-changer. Let’s walk through the basics of SEIS and EIS, how they work, their benefits, and how they can fuel growth for startups.
The Seed Enterprise Investment Scheme (SEIS) is a UK government program designed to promote investment in small and early-stage companies. It offers attractive tax incentives to individual investors who support these startups. SEIS encourages investors to take calculated risks by providing them with substantial tax reliefs.
KEY FEATURES OF SEIS
SEIS offers the following benefits to investors:
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Income Tax Relief: Investors can claim up to 50% of their investment amount as income tax relief, helping reduce the overall tax liability.
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Capital Gains Tax Exemption: Any gains made from the sale of SEIS shares are exempt from Capital Gains Tax (CGT) if certain conditions are met.
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Loss Relief: In case of business failure, investors can offset their losses against other taxable income, further reducing the risk.
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Carry-Back: Investors can carry back the SEIS investment to the previous tax year, maximizing the tax relief.
qualifying for SEIS
For a startup to qualify for SEIS, it must meet specific criteria, including:
Operating less than three years
Having fewer than 25 employees
Holding gross assets of under £350,000
Not raising more than £250,000 through SEISg the tax relief
What is EIS?
The Enterprise Investment Scheme (EIS) is a UK government initiative aimed at promoting investment in higher-risk companies. EIS offers a range of tax incentives to investors who support eligible businesses. EIS funding is typically sought by startups looking to scale their operations.
Under EIS, a business can raise up to £5 million each year, and a maximum of £12 million over the company’s lifetime.
KEY FEATURES OF EIS
EIS provides several advantages for investors:
Income Tax Relief: Investors can claim up to 30% of their investment amount as income tax relief.
Capital Gains Tax Exemption: Similar to SEIS, EIS offers CGT exemption on gains from EIS shares, assuming certain conditions are met.
Loss Relief: In the event of business failure, investors can offset losses against other taxable income, reducing potential losses.
Carry-Back: Just like SEIS, EIS investments can be carried back to the previous tax year.
qualifying for EIS
For a business to be eligible for EIS, it must meet specific criteria, including:
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Operating for less than seven years
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Employing fewer than 250 full-time employees
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Possessing assets of under £15 million (pre-investment)
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Not being controlled by another company
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.