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 has published some basic guidance. Unlike the EIS, which will no longer be available for shares issued on or after 6 April 2025, 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 of up to 50% of the amount invested, up to an annual subscription limit of £200,000 (£100,000 for shares issued before 6 April 2023)
•
gains on disposals of SEIS shares after three years

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