Introduction
Tax relief can feel like a maze. But if you’re raising funds for your UK startup, the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are signposts to extra cash. This SEIS EIS credit guide explains how they work, who benefits, and why Oriel IPO’s commission-free, educational marketplace is your ally.
Think of SEIS/EIS as twin engines. One sparks initial growth (SEIS), the other fuels scale-up (EIS). Combine them well—and you rocket ahead.
What Are SEIS and EIS?
Short answer? Government-backed incentives. Long answer? Two schemes with different levels of tax relief:
Seed Enterprise Investment Scheme (SEIS)
- For ultra-early stage startups.
- Investors get up to 50% income tax relief on investments up to £100k per tax year.
- Capital gains tax (CGT) exemption if shares held for at least three years.
- Loss relief if things flop (it happens).
Enterprise Investment Scheme (EIS)
- For growing startups.
- Income tax relief up to 30% on investments up to £1 million per year.
- CGT deferral on gains reinvested into EIS shares.
- Loss relief similar to SEIS.
In this SEIS EIS credit guide, you’ll see that combining both can save investors tens of thousands—making it easier for founders to secure crucial funding.
Why SEIS/EIS Matter
Startups burn cash. Tax relief injects fuel. Here’s why:
- Lower risk for investors. 30–50% tax relief cushions potential losses.
- Stronger pitches. “We’re SEIS/EIS-eligible” rings a bell with serious angels.
- Faster growth. Extra capital means you can hire, build tech, test markets.
In practice, a £200k SEIS round can look like a £300k boost in net value to the investor. That’s appealing.
How to Qualify
Eligibility isn’t a puzzle—but you need to tick the boxes:
- Carry out a qualifying trade (no property development, legal services or banking).
- Under 25 employees (SEIS) or 250 employees (EIS).
- Gross assets under £200k (SEIS) or £15 million (EIS) at the time of investment.
- Must be unquoted and UK-based.
- Must use funds for growth (asset purchases, R&D, market expansion).
Simple? Not quite. Documentation and HMRC approval are key. That’s where Oriel IPO’s educational resources come in handy.
Claiming SEIS/EIS Relief
- Incorporate and trade.
- Submit an SEIS3/EIS3 form to investors once HMRC signs off.
- Investors claim relief via Self Assessment.
- Keep records for at least six years.
Tip: Use a trusted accountant to avoid filing hiccups. Oriel IPO partners with advisory networks to point you in the right direction.
Oriel IPO vs Traditional Platforms
Raising via Seedrs or Crowdcube? They’ve got scale—but they charge commission. Let’s compare:
| Platform | Commission | Tax Focus | Advisory |
|---|---|---|---|
| Seedrs | 7.5% | Limited insights | Paid add-ons |
| Crowdcube | 6% | Basic overview | Regulation-heavy |
| Oriel IPO | 0% | Curated SEIS/EIS | Educational hub |
Oriel IPO’s strengths:
- Commission-free funding.
- Curated, tax-efficient opportunities.
- Subscription tiers for angels and founders (no hidden fees).
- Access to resources like our AI-driven Maggie’s AutoBlog to help founders tell their story online.
It’s like choosing a self-driving car over a clunky manual: less friction, more control.
Strategies to Maximise Credits
Don’t leave money on the table. Try these:
- Stagger rounds. Start with SEIS, then top up with EIS.
- Bundle investments. Encourage follow-on funding to deepen investor commitment.
- Document R&D. The more you invest in innovation, the more stories you can tell.
- Stay compliant. HMRC loves paperwork done right.
Example: A fintech startup raised £80k via SEIS, then £500k via EIS. They saved over £200k in tax relief across investors. Proof that planning pays.
Real-World Success Stories
- GreenTech Labs: Secured £150k in SEIS, developed a prototype, then raised £1 million in EIS.
- MedDigest: Used SEIS to pilot their app, then used the Oriel IPO network to land a £750k EIS round.
- ShopEase: Leveraged our commission-free model to offer investors better net returns—closing their round 25% faster.
These examples show how this SEIS EIS credit guide plays out in real life. It’s not hypothetical. It’s happening now.
Tips for Working with Oriel IPO
- Sign up for a free trial. Start listing or browsing curated deals.
- Join webinars on SEIS/EIS best practices.
- Use Maggie’s AutoBlog to generate SEO content for your pitch deck and website.
- Upgrade to our subscription tier for personalised support.
Conclusion
Mastering SEIS and EIS can transform your fundraising. This SEIS EIS credit guide gives you the roadmap. Now it’s your turn.
