SEIS – SEED ENTERPRISE INVESTMENT SCHEME
Overview
If your start up is fundraising one of your key objectives must be to make yourself more investible. The Seed Enterprise Investment Scheme (SEIS) will help you do just that.
WHAT IS SEIS?
SEIS is a scheme designed to give the economy a boost and help attract investors. The scheme entitles start-ups to receive considerable funding but there’s a lifetime cap of £150,000.We’ve helped many start-ups gain SEIS assurance and clearance and can help businesses like yours understand SEIS company requirements. We’ve designed a process with templates and industry knowledge that works so you gain clearance seamlessly.
SEIS ELIGIBILITY – TO BE ELIGIBLE, A COMPANY MUST:
• Have less than 2 years trading history
• Not be quoted
• Not be controlled
• Have a UK permanent establishment
WHAT DOES THE INVESTOR GET?
- 50% income tax reducer for the current year and previous tax year
- 50% capital gains reducer if they roll previous gains into an SEIS company from prior investments
- 0% capital gains tax on any rise in market value of their shares
- 50% extra loss relief on the capital at risk if the company fails
- 100% inheritance tax relief
HOW IS SEIS DIFFERENT TO EIS?
Unlike the EIS, the SEIS is focused on very early-stage companies and offers significantly greater Income Tax relief of 50% against the amount invested. If you want to find out more about the differences between EIS and SEIS –check out our blog about it.
SEIS CLEARANCE PROCESS
To apply, your company will need to complete an advance assurance application, the SEIS/EIS (AA) and follow this up by completing an SEIS1 form. Our expert teams can guide you through the process, and will continue to support you, way after fundraising is secured, to ensure you stay SEIS compliant.
