SEIS/EIS in short

How do SEIS and EIS work?

  • HMRC assures that you qualify for EIS and SEIS

  • You issue shares to investors

  • You get investors’ SEIS/EIS certificates from HMRC

  • Investors claim tax reliefs on what they invested

SEIS/EIS Explained

F6S has helped thousands of startups like you

  • "F6S were a great help with filing my EIS application. They took a lot of the hassle away and ensured it was completed correctly"

  • "I started using F6S accounting services right at the beginning when setting up Aptlink. Being an innovative tech startup we knew SEIS/EIS assurance would be a must for us so with the help of F6S we filed our SEIS application. We are happy and proud to say we are SEIS approved and investors love this!"

Call 074 735 02250 or email seis-eis@f6s.com
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What are SEIS/EIS worth to investors?

The Enterprise Investment Scheme (EIS)

  • Investors can claim back 30% of their investments as income tax relief, for a maximum of £300,000 per year
  • No capital gains tax on any profit made from an EIS investment
  • In case of a loss, investors can offset it against their income tax
  • No inheritance tax on shares bought through EIS

YOU INVEST IN A COMPANY ELIGIBLE FOR EIS

For example, if you invest £100,000 in a company eligible for EIS, you’re income tax bill is reduced by £30,000.

Your income tax bill £80,000
Your investment £100,000
You can save £100,000 x 30% = £30,000
Amended tax bill £80,000 - £30,000 = £50,000

YOU MAKE A PROFIT FROM AN INVESTMENT INTO EIS COMPANY

For example, if you sell your shares and make a profit of £50,000, you can save £9,000 or more.

Your investment £100,000
You sell your shares for £150,000
Capital gains £150,000 - £100,000 = £50,000
Capital gains tax (18% or more) £50,000 x 18% = £9,000
You save At least £9,000

YOU LOSE YOUR INVESTMENT INTO EIS COMPANY

For example, if you invest £100,000 and the company fails, you can reduce your income tax bill by £14,000 or more.

Investment lost £100,000
Income tax relief due to investment £100,000 x 30% = £30,000
Actual loss £100,000 - £30,000 = £70,000
Further income tax relief due loss £70,000 x 20% = £14,000
You save At least £14,000

YOU INHERIT SHARES BOUGHT THROUGH EIS

For example, if you inherit £500,000 worth of shares, you don’t need to pay inheritance tax and you save £70,000.

Inherited investment value £500,000
Taxable above threshold £500,000 - £325,000 = £175,000
Inheritance tax (40%) £175,000 x 40% = £70,000
Inheritance tax due 0
You save £70,000

The Seed Enterprise Investment Scheme (SEIS)

YOU INVEST IN A COMPANY ELIGIBLE FOR SEIS

For example, if you invest £10,000 in a company eligible for EIS, you’re income tax bill is reduced by £5,000.

Your income tax bill £40,000
Your investment £10,000
You can save £10,000 x 50% = £5,000
Amended tax bill £40,000 - £5,000 = £35,000

YOU REINVEST INTO SEIS

For example, if you invest £10,000 your income tax bill is reduced by £5,000. If you reinvest those £5,000 into a company eligible for SEIS, you’re income tax bill is reduced by a further £2,500.

Your income tax bill £40,000
Your investment £10,000
You can save £10,000 x 50% = £5,000
Amended tax bill £40,000 - £5,000 = £35,000
You reinvest into SEIS £5,000
You can claim back £5,000 x 50% = £2,500

F6S can help you with EIS/SEIS

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  • Hassle free
  • Dedicated accountant
  • Tech startup specialist

SEIS and EIS Schemes Eligibility

Companies

Prerequisite SEIS EIS

Investors

How can you spend the money raised?

There are some limitations in when and how you can spend the money you raise issuing SEIS/EIS shares.

Excluded Activity Description
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By providing this personal information, you confirm you agree to us using it to provide our services and to keep in touch regarding information we think may interest you. You also confirm agreement to the Terms of Service and Privacy Policy. You can change your mind about receiving information from us as set out in our policies.

Frequently Asked Questions

  • What’s the difference between SEIS and EIS?
  • Do you need interest from an investor to get Advanced Assurance?
  • How can I apply for SEIS/EIS?
  • How long should I be trading for to qualify for SEIS?
  • What does trading mean?
  • What’s the maximum I can raise under SEIS/EIS?
  • What is Advanced Assurance?
  • What do I need for SEIS Advanced Assurance?
  • Why would the investor want it?
  • How do investors claim relief?
  • Does my Advanced Assurance expire?
  • Does my company qualify for SEIS?

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