Seed Enterprise Investment Scheme (SEIS)

Seed Enterprise Investment Scheme (SEIS) is a tax relief scheme run by HMRC for very young UK companies that raise equity from individual investors. The company must be less than 3 years old when the shares are issued, and it must have fewer than 25 employees at that point. Investors who buy new shares can claim Income Tax relief at 50%, plus Capital Gains Tax reinvestment relief.

What Seed Enterprise Investment Scheme (SEIS) offers

• Investor Income Tax relief: relief at 50% on new shares bought by investors, subject to an annual cap.
• Capital Gains Tax reinvestment relief: a further tax relief that comes with the scheme.
• Compliance certificate: the company receives a letter of authorisation, a reference number and form SEIS3 to give to its investors.
• Qualifying trade: the company must carry out a new qualifying trade and be established in the UK.

Customers and markets

Very young UK companies raising equity from individual investors. Companies that are quoted, or that have arrangements to become quoted, do not qualify.

Key facts

• Run by: HMRC
• Company age limit: less than 3 years old
• Team limit: fewer than 25 employees when shares are issued