Corporate and business taxes

Enterprise Investment Schemes (EIS and SEIS)

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Schemes (SEIS) aim to help new and early-stage companies to attract investment. In return unquoted companies attract equity investment by offering investors a range of tax incentives. 

The appeal for investors is clear and for companies looking for funding, the investment opportunity will be much more attractive if investors qualify for EIS or SEIS.

Under EIS, up to £5 million can be raised each year, and a maximum of £12 million in a company’s lifetime. It also includes amounts received from other venture capital schemes. 

The company must receive investment under a venture capital scheme within 7 years of its first commercial sale.

Seed EIS is targeted at companies looking to raise funds in their first two years of trading. 50% income tax relief is available on investments of up to £100,000 – again no CGT is payable when the shares are sold. You must follow the Schemes strict conditions.

Key points to note

  • Investors in EIS companies can claim CGT relief of up to 30% on their investments up to £1,000,000 per year, and up to 50% for investments made in SEIS companies.
  • EIS companies must have less than £15m worth of assets and <250 employees, whereas SEIS companies must have less than £200,000 of assets.
  • EIS companies can raise up to £5m in equity investment per year, up to a maximum of £12m during the company’s lifetime. SEIS companies can raise up to £150,000 over a three-year period.

Our services include

  • Discussing your business and objectives with you and if EIS/SEIS is appropriate seek to receive advance assurance from HMRC.
  • Introducing you to Venture Capitalists and Business Angel networks and support you throughout the process – >Getting investor ready
  • Taking care of the compliance associated with setting up scheme, the forms for investors so that they can claim their tax relief and prove to HMRC you qualify for EIS or SEIS.
  • Advising investors on the pros and cons of EIS/SEIS investments in the context of your situation and investment goals.
  • We will also introduce you to angel investment syndicates and LINC Scotland. LINC Scotland is the national association for business angels in Scotland and they bring together investors and businesses seeking investment and it is a good starting place for those considering becoming a business angel. What is angel investing? >find out more  

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Our Corporate and business taxes Expert Wendy McBride

Wendy is a highly experienced tax accountant and an ATT Fellow working with corporate and private clients.

Wendy helps our clients to identify and access all the tax reliefs and allowances they’re entitled to access, as well as helping them to plan ahead to minimise potential future tax liabilities.