Seed Enterprise Investment Scheme (SEIS) & Enterprise Investment Scheme (EIS)

SEIS offers tax generous reliefs to investors including:

• 50% income tax relief on the amount of investment up to £200,000 per tax year.
• Capital gains tax (CGT) exemption on disposals of SEIS shares if the investor holds these shares at least for more than three years.
• Reinvestment relief of 50% or £100,000 from capital gains if you sell any asset and use all or part of the gain to invest in shares that qualify for SEIS.
• Loss relief if the value of the investment declines instead of going upwards.
• Inheritance tax relief on the value of the shares if the investor holds these shares at least for two years.
• If shares are sold at a loss, the investor may be able to offset the loss against their other capital gains.

EIS tax benefits for investors include:

• 30% income tax relief on the amount of investment of up to £1m per tax year. From 2023/24 up to £2 million, if at least £1 million of that is invested in knowledge-intensive companies.
• CGT exemption on the disposal of EIS shares if held for the qualifying period and on which Income Tax relief was given and not withdrawn.
• If EIS shares are disposed of at a loss on which Income Tax relief has been taken, the loss can be offset against income for that year and the previous year and it would be beneficial instead of being offset against capital gains.
• Inheritance tax relief on the value of the shares if the investor holds these shares at least for two years.
• Capital Gains Tax can be deferred if you use your gains from the sale of any asset to make any amount of investment in a company that qualifies for EIS.

The scheme:

• Offers tax reliefs to those who buy new shares in the company.
• Helps to raise money when your company starts to trade.
• Offer to raise a maximum of £250,000 through Seed Enterprise Investment Scheme.

The scheme:

• Offers tax reliefs to those who buy new shares in the company.
• Helps companies to raise money up to £5 million each year and a maximum of £12 million in your company’s lifetime to grow business.