EIS/SEIS

Growing organically can only get you so far. Have you thought about raising additional capital for a new opportunity or to scale up your operations?

The Seed Enterprise Investment Scheme (SEIS) was introduced by HMRC to help small, early-stage companies raise funds through individual investors by providing a series of tax reliefs on investments made into qualifying companies.

We can simplify the terminology and manage the entire process for you.

What are the key steps to include when using EIS or SEIS?

EIS/SEIS are both schemes that need HMRC approval.

Most S/EIS investors require the company to have Advance Assurance from HMRC before they invest. If your investors are willing to invest regardless of tax relief, then you don't need to worry about applying for Advance Assurance.

You’ll need to provide:

• The business plan and three year projected financial forecasts
• Pitch Deck
• A copy of your latest accounts
• An up-to-date copy of your memorandum and articles of association
• The information memorandum, prospectus or other document used to explain the fundraising proposal to your investors
• Details of any other agreements between your company and the shareholder
• A list of the amounts, dates and venture capital schemes under which you’ve previously received investment
• Any other documents to show you meet the qualifying conditions

HMRC will usually give you a response within a week, if there’s nothing controversial in the application, allowing you to start issuing certificates to investors.

What are the benefits for my investors? 

The main value of EIS/SEIS is the tax relief provided to investors via these schemes. As an investor, they can claim 50% income tax relief via the SEIS scheme and 30% via the EIS scheme, making the schemes an attractive way to invest their money.

How do you claim the S/EIS tax reliefs?

You can claim relief via your tax return and you will need a S/EIS3 or S/EIS5 form from the S/EIS company (or fund manager). You should receive this after your money has been invested, your shares allotted and the S/EIS company receives confirmation from HMRC it has satisfied all the requirements.

If you have already filed your tax return and you received your S/EIS3 certificate(s) you can still make a claim in the following tax year. A claim for EIS tax relief can be submitted up to 5 years after 31st January following the tax year in which the shares were issued.