SEIS/EIS
Quick Insights: SEIS/EIS: A Quick Overview
Series 1: Getting Started with SEIS/EIS
Your go-to resource for navigating the ins and outs of the Seed Enterprise Investment Scheme (SEIS) & Enterprise Investment Scheme (EIS)!
The UK government has two flagship schemes designed to support startups and encourage investment: the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). While they serve similar purposes, their eligibility criteria, benefits, and investment limits differ, making them suitable for different stages of your business journey.
What is SEIS?
The SEIS targets very early-stage companies. It offers tax reliefs to individual investors who buy new shares in your company, easing the way for your startup to secure initial funding. Under SEIS, investors can invest up to £100,000 in a single tax year, which can be spread over multiple companies. For startups, the maximum amount that can be raised under the scheme is £150,000.
What is EIS?
EIS is aimed at more mature startups seeking the next round of funding to fuel growth. It allows for a larger investment amount than SEIS, with investors able to put in up to £1,000,000 per tax year. For startups, there’s no specified maximum total investment limit, but there are size and trade limitations to qualify.
Why Are They Important?
SEIS and EIS are crucial for UK startups due to their ability to attract investors. By offering significant tax reliefs, they lower the financial risk for investors, which can be the deciding factor in choosing to fund a new business. This support is invaluable for startups in their formative stages, providing a much-needed financial boost.
The Bottom Line
Grasping the basics of SEIS and EIS is just the beginning of harnessing these schemes to benefit your startup. They not only offer a financial buffer but also open up opportunities to connect with a network of experienced investors eager to back innovative ideas. Stay tuned for our next posts, where we’ll explore eligibility, benefits, and how to obtain advance assurance, ensuring you’re fully equipped to make the most of SEIS/EIS.
Ready to make the most of SEIS/EIS for your startup? Let’s chat! Whether you’re seeking clarity on eligibility, benefits, or advance assurance, we’re here to guide you through the process. Book a no-obligation consultation with our UK experts and unlock the potential of these valuable investment schemes for your startup.
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