Enterprise Investment

The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are two government-backed initiatives designed to encourage investment in early-stage businesses by offering significant tax incentives to investors. These schemes are invaluable to startups seeking to raise capital and to investors looking for tax-efficient ways to support high-growth potential companies. Here’s how they work

Why EIS and SEIS are Essential for Startups and Investors

For startups, EIS and SEIS offer a compelling way to raise capital while minimizing the risks for investors, making it easier to attract funding in a competitive market. These schemes also enhance the visibility and credibility of businesses among investors who are willing to take calculated risks on high-potential opportunities.

For investors, the tax reliefs provided by EIS and SEIS significantly reduce financial risk, allowing them to invest in innovative, high-growth startups with the potential for substantial returns. Additionally, the schemes encourage a diversified portfolio by offering tax advantages across a range of industries and sectors.

How can the EIS & SEIS schemes help your business grow?

How it all works...

What is SEIS (Seed Enterprise Investment Scheme)?

SEIS is tailored for very early-stage startups that are just beginning their journey. It helps businesses that are typically less than two years old and looking for smaller amounts of capital to launch their operations.

What is EIS (Enterprise Investment Scheme)?

EIS is aimed at helping larger, more established startups and growing businesses raise funds by offering attractive tax reliefs to investors. It’s ideal for companies looking to scale and requires that they have been trading for a few years but are still early-stage.

EIS Income Tax Relief

30% Income Tax Relief: Investors can claim income tax relief on 30% of the amount invested, up to £1 million per tax year (or £2 million if invested in knowledge-intensive companies).

SEIS Income Tax Relief

Investors can claim 50% income tax relief on investments up to £100,000 per tax year, offering a significant incentive for high-net-worth individuals.

Tax-Free Gains:

If SEIS or EIS shares are held for at least three years, any gains are free from Capital Gains Tax.

EIS Inheritance Tax Relief:

After two years, the investment may qualify for 100% inheritance tax relief, provided the shares are still held at the time of death.

SEIS CGT Reinvestment Relief:

Up to 50% of the Capital Gains Tax on other investments can be eliminated when those gains are reinvested in SEIS-qualifying companies.

Loss Relief:

If the business fails, investors can offset any losses against their income or capital gains tax.

EIS Investments

EIS allows companies to raise up to £5 million per year, with a maximum of £12 million over the company’s lifetime. It’s a great way to attract investors while providing the capital needed to scale and grow.

SEIS Investments

Through SEIS, companies can raise up to £250,000 in total, providing a critical early-stage capital injection to get the business off the ground

Get Started with EIS and SEIS

Whether you’re a startup looking to raise capital or an investor seeking tax-efficient opportunities, EIS and SEIS can offer substantial benefits. Reach out to us today to learn how we can help you navigate these schemes and unlock their full potential for your business or investment strategy.

Contact us to explore how EIS and SEIS funding can drive your business forward or make your next investment a tax-smart move.