What is SEIS?

The Seed Enterprise Investment Scheme (SEIS or Seedis) is a government initiative designed to encourage entrepreneurship and investment in the UK. It offers investors major tax efficient benefits.

How it works

As an investor you can benefit from the SEIS scheme when you create a portfolio of investments in the UK, with UK companies. You are entitled to invest up to £100,000 in one or more companies, but you can’t have more than a 30% stake in the company you choose to invest in. If you fulfil the criteria, then you may be entitled to up to 50% tax relief, regardless of your marginal rate in the same year as your investment(s).

The ins and outs

The company must have less than 25 employees and must not be more than 2 years old. The company assets at the time of investment must not amount to more than £200,000. There are certain sectors which are SEIS approved, this list excludes finance and investment.

Find out more about SEIS

Read more about SEIS on the HMRC website
For an easy-to-understand visual introduction to SEIS and the benefits, watch the ‘SEIS, the case for the new investor‘.

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