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
