What is SEIS/EIS?

The SEIS or Seed Enterprise Investment Scheme and EIS or Enterprise Investment Schemes are tax incentives offered by the government to encourage investment in small and early stage companies.

SEIS was introduced by the Government in the 2012/2013 tax year and reduces the risk to investors of investing in these types of new/small companies. The SEIS offers tax relief at a higher rate (50% income tax relief) than that offered by the existing EIS. A company can raise up to £150,000 using the Seed EIS.

EIS was introduced in 1994 by HMRC to stimulate investment into smaller, higher risk, unquoted companies. It allows sophisticated investors to invest up to £1,000,000 in any tax year and receive 30% tax relief.