SEIS/EIS ASSURANCE

What exactly are SEIS and EIS?

SEIS and EIS are two initiatives set up by the UK government to encourage investment in early-stage and growing businesses, by offering generous tax incentives to the angels who invest in them.

The schemes give eligible angel investors tax breaks – of up to a huge 50% – on the money they invest, making angel investing more accessible (and potentially more affordable) too. 

EIS was established in 1994 and SEIS in 2012. In that time, they’ve helped over 53,000 growing businesses raise almost £30 billion of investment here in the UK.

How can SEIS and EIS help angel investors?

Both schemes help angels access very sizeable tax breaks on the money they invest. With SEIS, which encourages investment in earlier-stage businesses, angels can tap into 50% income tax relief, which can be used to offset the current or previous year’s tax bill. They can get capital gains tax relief on selling SEIS shares, as long as they’ve been held for at least three years. And on top of that, any losses can also be written off against income tax.

With EIS, which incentivises investment in slightly older businesses, angels can get 30% income tax relief, again on their current or previous year’s tax bill. And in the same way as with SEIS, they can get capital gains tax relief and loss relief.

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 Who can invest using SEIS and EIS?