Seed Enterprise Investment Scheme
(SEIS)
The Seed Enterprise Investment Scheme is a UK government scheme that offers tax reliefs to individual investors who buy new shares in qualifying early-stage companies. Investors can claim Income Tax relief of 50% on investments up to £200,000 per tax year, and Capital Gains Tax exemption on gains from SEIS shares held for three years. The scheme aims to make it easier for small, early-stage companies to raise equity finance.
SEIS is designed for very early-stage companies that have been trading for no more than three years, have gross assets under £350,000, and have fewer than 25 full-time equivalent employees at the time of investment. The company must be UK-incorporated and not listed on a recognised stock exchange. From April 2023, individual investors can claim 50% Income Tax relief on up to £200,000 invested per tax year, and any gains on SEIS shares held for at least three years are exempt from Capital Gains Tax. A company can raise a maximum of £250,000 under SEIS in its lifetime. Both the company and the investor must meet HMRC's qualifying conditions throughout the minimum three-year holding period or reliefs may be withdrawn. Companies should apply to HMRC for advance assurance before approaching investors.