SEIS Information

Summary

The Seed Enterprise Investment Scheme (SEIS) was introduced in 2012, and is similar to the EIS, though to qualify the companies must be smaller and at an earlier stage than for EIS. As these are therefore typically riskier investments, there are more substantial reliefs available

Tax Benefits

The benefits of investing into an SEIS qualifying company include:

  • 50% Initial Income Tax Relief

    Actual net cash outlay 50 pence in the £1


  • CGT Freedom

    No Capital Gains Tax to pay


  • CGT Reinvestment Relief

    Potential exemption of 50% of an existing CGT bill


  • Loss Relief

    Maximum exposure of 27.5 pence in the £1 for a 45% tax payer


  • Inheritance Tax Relief

    Potential 40 pence in the £1 saving

See All Tax Benefits

Qualifying Criteria

There are several criteria that businesses will need to meet in order to qualify as an SEIS business, and some trades are also excluded. For example the business must:
  • Be a UK registered company
  • Have fewer than 25 employees
  • Assets less than £200,000
  • The business cannot be more than two years old
  • Must be an unquoted company (Not listed on any major stock exchange)
  • No previous other risk capital scheme investments
  • No previous SEIS, EIS or VCT investments made
  • Possible exemption of 50% of an existing Capital Gains Tax bill
  • Up to 100% IHT relief (After two years of holding the investment)

SEIS Tax Calculator

Visit the GrowthInvest Tax Calculator to illustrate how an investment in SEIS can impact your financial tax position

Further Information

Further information on SEIS can be found on the HMRC website, as well as on EISA the trade organisation for the industry