SEIS / EIS
Tax Incentives
Supercharge Your Investment with SEIS/ EIS
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are UK government initiatives that encourage investment in early-stage and innovative companies. SEIS provides substantial tax incentives to investors, including a 50% income tax relief and capital gains tax exemption, aiming to boost funding for startups. EIS offers similar benefits, including a 30% income tax relief, capital gains tax exemption, and loss relief, encouraging investment in higher-risk small to medium-sized enterprises. These schemes promote economic growth, innovation, and entrepreneurship while mitigating investment risk through tax incentives.
How can we help?
Setting up the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS) involves several steps to ensure compliance with the scheme's requirements and eligibility criteria. Here's how we can help:
1. Due diligence and compliance
Verify that your company meets the criteria for SEIS or EIS. Ensure your company qualifies as a small company, is carrying out a qualifying trade, and has not exceeded the scheme's age and gross asset limits.
2. Advance Assurance Application
Apply for advance assurance from HM Revenue & Customs (HMRC) to confirm that your company qualifies for SEIS or EIS. Submit the required documentation, including the business plan and financial inform
3. Issue Shares
The shares you issue must be paid up in full, in cash, when they’re issued and they should be full risk ordinary shares which are not redeemable and carry no special rights to your assets.
4. Submit a Compliance Statement
After issuing shares, you must submit a compliance statement (form EIS1) to HMRC for the shares issued, to allow your investors to claim EIS tax reliefs. You’ll need to provide necessary documents such as the business plan, financial forecasts, memorandum and articles of association, and other relevant information.
5. Post-Investment Compliance
If HMRC agrees with your application, they will send you a letter of authorisation, a unique reference number, and a compliance certificate (form EIS3) to give to your investors. You must maintain compliance with SEIS or EIS rules, such as the utilisation of funds for qualifying business activities and reporting requirements, to retain the benefits for both your company and investors.
Benefits of investing in SEIS vs EIS
Investors can easily claim their SEIS/ EIS tax reliefs by following specific steps. We’re here to help!
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