SEIS Funding

How can the SEIS help your business?

Launched in 2012, the Seed Enterprise Investment Scheme (SEIS) was introduced to help small, early-stage companies grow by raising seed funds through individual investors.

The scheme works by offering significant tax reliefs to investors, allowing companies to claim on up to £100,000 invested through the scheme per annum. SEIS companies can be invested in directly, or through an SEIS fund.

SEIS Tax Relief

The SEIS offers a number of tax reliefs to investors, including automatic reductions to loss relief. Just so you’re aware, this can be dependent on your tax bracket, so you’ll need to know what this is.

There are also new rules in place for SEIS approval and to benefit from most of the tax reliefs listed below, you must hold qualifying share for a minimum of three years. The company raising the money principally needs to be shown to be a risky adventure for investors.

At TS Partners, we have developed ways to make the tax documentation process easier for investors.

SEIS Tax Relief Rules for Businesses

• Your company can only receive a maximum of £150,000 through SEIS investments in its lifetime
• Your company must not have more than £200,000 of gross assets at the time that the shares are issued
• Your company must have been trading for more than 2 years
• You must have fewer than 25 full-time employees

SEIS Tax Relief Rules for Investors

• You can only invest up to a maximum of £100,000 in any number of qualifying companies each tax year
• You must hold the shares for a minimum of 3 years
• You cannot carry-forward your SEIS tax relief
• You must be a UK tax payer