The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies raise equity finance by offering tax reliefs to individual investors who purchase new shares in those companies. SEIS is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering tax relief at a higher rate than the EIS scheme.

Tax Relief: 

• 50% Income Tax Relief (up to £50,000 due to maximum £100,000 invested).
• Relief can be carried back to the previous tax year.
• CGT – 50% is wiped out when investing the gain and 50% is deferred.
• Relief is lost if the shares are disposed within 3 years (except on death or to a spouse).
• IHT relief after 2 years through BPR (business property relief). 

Conditions 

• Eligible shares are new ordinary shares that are not redeemable for at least three years; 
• A qualifying company must be unlisted when the shares are issued, and there must be no arrangements at that time for it to become listed;
• The company must not be more than 2 years old;
• Fewer than 25 full-time employees at the date on which the shares are issued; 
• The gross assets of the company must not exceed £200,000 before the issue of shares;
• The company must carry on a qualifying trade and have a permanent establishment in the UK.