Seed enterprise investment scheme (SEIS) ― introduction

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The SEIS, like the enterprise investment scheme (EIS), is designed to encourage individuals to invest money in shares issued by qualifying unquoted companies, though is specifically aimed at smaller companies which have only recently begun to carry on a qualifying trade.

HMRC guidance is set out at VCM30000 onwards and further information on applying for SEIS has been published at ‘Apply to use the Seed Enterprise Investment Scheme to raise money for your company’. Unlike the EIS, which will no longer be available for shares issued on or after 6 April 2035 (subject to Treasury Regulations extending this date), there is no sunset clause for SEIS.

Tax benefits to the individual

The main benefits of the scheme are similar to those for the Enterprise investment scheme (EIS) (see SEIS and EIS ― overview guidance note). There are no particular tax reliefs available to a qualifying company that is seeking investment. The tax reliefs are given to the investor. Under SEIS, the key incentives for investors are as follows:

•
income tax relief for the investor

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