Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Scheme (SEIS)

EIS and SEIS are schemes designed to help small or medium sized businesses by attracting tax efficient investment.

Enterprise Investment Schemes (EIS)

The EIS is designed to help smaller, higher-risk companies raise finance by offering start-up tax breaks on new shares in those companies that qualify.

For the investor, it’s a tax efficient way to invest in small companies. It is aimed at wealthier, sophisticated investors. People can invest up to £1m in any tax year and receive 30 per cent tax relief.

However, they are locked into the scheme for a minimum of three years. EIS seeks to encourage investment into unlisted companies.

Seed Enterprise Investment Schemes (SEIS)

The SEIS is an incredibly generous derivative of the EIS and was introduced in April 2012. Its aim is to encourage seed investment in early-stage companies.

Investors, including directors, can receive initial tax relief of 50 per cent on investments up to £100,000 and capital gains tax (CGT) exemption for any gains on the SEIS shares. The maximum amount to be raised for each company is £150,000.

How can we help?

We can help businesses to:

  • understand whether or not they will qualify for SEIS or EIS
  • Liaise with HM Revenue and Customs to get the scheme approved and set up
  • Assist with the preparation of the company’s share issues and related paperwork