Unleash Your Business Potential with SEIS: Seed Enterprise Investment Scheme Unveiled

George Nash ACCA

Discover SEIS, short for “Seed Enterprise Investment Scheme.”

The UK government introduced the SEIS as a tax-advantaged initiative to inspire investments in emerging start-ups. Its purpose is to promote economic growth by providing tax benefits to individual investors who actively support small, early-stage companies.

Furthermore, the government has confirmed recent changes in the limits available to UK-based investors and companies wishing to raise investment through the SEIS.

If you’re a small, young UK-based company with ambitions to grow through investment, have you explored the Seed Enterprise Investment Scheme? Furthermore, investors benefit from immediate income tax relief of 50% on the purchase of SEIS-approved shares. They can also enjoy tax-free gains when selling those shares, provided they meet the conditions at the point of sale.

Several conditions must be met by a company issuing the SEIS shares to an investor:

  • Must have a fixed place of business in the UK
  • Must have started trading less than three years before the share issue date
  • Must have gross assets below £350,000 when the shares are issued
  • Must have less than 25 full-time employees when the shares are issued
  • The company must carry out or be preparing to carry out a “qualifying trade”.
  • Must be a standalone UK company or parent, cannot be and never has been a subsidiary.
  • Must not have already received any benefits under the EIS or VCT schemes.

To qualify for SEIS shares, a company must invest the consideration they receive in their trade or development activity. Besides, companies are limited to raising a maximum of £250,000 through SEIS.

For more information, get in touch with a member of #TeamSAS

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