The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are two of 4 venture capital schemes designed to help companies raise capital in the early stages of their life-cycle. Both schemes offer tax incentives to investors who purchase shares in qualifying companies. The primary tax incentive offer investors an income tax reduction of 50% of the amount invested in the case of SEIS and 30% of the amount invested for EIS, in addition to other benefits such as capital gains tax relief, loss relief and capital gains tax reinvestment relief.
Performing a detailed review with management and proven step-by-step process we were able to submit the advance assurance application in one day. Together with the Founder team, we obtained approval 2 days later ready for the business to raise their first capital.
If you’re part of a group, the majority of the group’s activities must be qualifying trades. In addition to the basic rules listed above, companies and the shares that are issued must meet further requirements and investors will typically want some certainty that their investment will qualify for relief. You can ask HMRC if they agree that an investment would meet the conditions of a scheme before you apply. This is called advanced assurance. You can use this to show your potential investors that your proposed investment may qualify for a scheme.