“Many investors will only fund a start-up if SEIS tax relief is available. We guide you through the entire process, help you become investor-ready, and secure HMRC Advance Assurance so you can raise funding with confidence.”
Quote by Nigel Holland BA (Hons) FCA
SEIS = Seed Enterprise Investment Scheme
It is a UK Government tax relief scheme designed to encourage investment into very early-stage companies by offering extremely generous tax incentives to investors.
Think of it as: the Government sharing the risk of investing in start-ups.
Core idea
A private investor buys shares in a qualifying start-up company.
In return, HMRC gives the investor large tax reliefs.
This makes raising seed capital far easier for new businesses.
Main tax reliefs for investors
1) 50% Income Tax relief
Invest up to £200,000 per tax year.
Investor can claim back 50% of the investment against their income tax bill.
Example:
Invest £20,000
Income tax reduction = £10,000
Effective cost of investment = £10,000
This is why SEIS is so powerful for raising funding.
2) Capital Gains Tax exemption on the shares
If the shares are held for at least 3 years, any profit on sale is 100% tax-free.
No CGT at all.
3) Capital Gains reinvestment relief
If the investor has a capital gain elsewhere, they can reinvest that gain into SEIS and pay no CGT on the reinvested amount.
This makes SEIS highly attractive to higher-net-worth individuals.
4) Loss relief protection
If the company fails (which start-ups often do), the investor can claim loss relief against income.
After tax reliefs, the real risk can fall to roughly 27.5% of the investment for higher-rate taxpayers.
This risk reduction is the key driver of angel investment.
Company eligibility (the important bit for clients)
A company must:
• Be UK based
• Be trading (not investment company)
• Have less than £350k gross assets before investment
• Have fewer than 25 employees
• Be less than 3 years old when shares issued
• Raise maximum £250k total under SEIS
Funds must be used for genuine business growth.
Why SEIS is hugely valuable for start-ups
From a business growth perspective, this is one of the strongest funding tools available.
It allows a company to say to investors:
“Half your investment is paid by HMRC and your gains are tax free.”
That massively reduces investor resistance.
Typical real-world use
Early-stage businesses raising:
• £50k – £250k seed funding
• Pre-revenue or early revenue stage
• Tech, services, apps, SaaS, innovation businesses
Many angel investors will only invest if SEIS qualifies.
