The tax incentives offered under the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are very attractive but come with some stringent criteria to follow.
What do they do?
Essentially, SEIS/EIS reliefs are designed to help businesses raise money by offering tax reliefs to individual investors who buy new shares. SEIS tends to be used for newer businesses, whereas EIS is generally utilised for the growth phase of a business.
Both reliefs offer significant value to potential investors in the form of income tax and capital gains tax benefits, and, whilst SEIS attracts higher tax reliefs, EIS allows notably higher investment which reflects the stage of the company’s growth.
Speak to an expert
The generous tax reliefs provided by EIS and SEIS come with the caveat that the rules are extremely complex and impose requirements on the company receiving the investment as well as on the investors. Preparation and professional advice is therefore vital for businesses before seeking funding supported by these regimes.
For further information on the SEIS or EIS from a company or investor perspective, speak to a member of our Tax team below.
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