SEIS and EIS Benefits

SEIS Income Tax Relief

Income Tax Relief of up to 50% of the investment available on the first £100,000 invested in any tax year. The relief is given by way of a reduction of the investor’s tax liability.

EIS Income Tax Relief

Income Tax Relief of up to 30% of the investment available on the first £100,000 invested in any tax year. The relief is given by way of a reduction of the investor’s tax liability.

Capital Gains Tax Exemption

Capital Gains Tax Exemption on disposal of the SEIS/EIS investment. This applies after the Relevant Holding Period, which is currently 3 years.

SEIS CGT Reinvestment Relief

For SEIS there is a CGT Reinvestment Relief of 50% on up to £100,000 of any gain, with the tax on the balance being deferred. The gain has to be reinvested in a SEIS qualifying company in the same tax year.

EIS CGT Deferral

For EIS there is a Capital Gains Tax Deferral for which there is no annual limit. Deferral Relief lets you treat a gain as not arising until some future date if you acquire EIS shares for a corresponding amount.

SEIS/EIS Loss Relief

If you make a loss on a disposal of your SEIS shares you can set this loss against your chargeable gains. In computing the loss, you must reduce the cost of your shares by the amount of any Income Tax relief given and not withdrawn.

SEIS/EIS Inheritance Tax Relief

100% Inheritance Tax relief against the value of the shares is granted two years after the date of the intial purchase.

SEIS Key Figures

SEIS Companies

UK based

Trading for less than 2 years

Less than 25 people

Independent, unquoted and within a qualifying trade

Gross assets less than £200k

Can raise up to £150k under SEIS

EIS Companies

UK based

Typically trading for more than 2 years

Less than 250 employees

Independent, unquoted and within a qualifying trade

Gross assests less than £15m

Can raise up to £5m under EIS

Register Interest

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