What are EIS and SEIS?

The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are both schemes which are designed to help businesses raise capital from individual investors by offering those investors tax reliefs on the shares they buy in your company. However the company needs to follow various rules in order to ensure that the investors’ tax relief is not compromised.

Is my business eligible to claim and how much can I claim?

There are various qualifying criteria for eligibility, but broadly most UK-based private companies qualify to apply, although SEIS only applies to companies carrying out a new qualifying trade. The maximum amount that can be received through SEIS investments is £150,000 but a company can raise up to £5 million in any 12-month period via EIS.

How can Downham Associates help?

Although both SEIS and EIS are excellent opportunities to raise funds, this is a particularly complicated area to understand, especially for a new business. Therefore we strongly recommend talking to our in-house experts who will guide you through the full process, including firstly establishing whether this is the right vehicle for your business and how much involvement your investors will have, then steering you through the qualifying criteria, making the application and then monitoring that all relevant rules are followed after the event.

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