SEIS and EIS ― overview

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in high-risk, small, unquoted companies that may find it difficult to raise finance without the tax incentives being offered.

There are stringent conditions imposed upon companies wishing to qualify for the scheme. Tax advice on the schemes should be undertaken and supervised by a suitably experienced practitioner. Terms of engagement for SEIS and EIS work should be carefully drafted in particular because conditions are tested on an ongoing basis. Therefore, tax advisers should ensure that they limit their liability in respect of any future action taken by the company which could affect qualification for the schemes.

There are no particular tax reliefs available to the company. The tax reliefs are intended for the investor to incentivise investment in a high-risk, early stage company. The availability of tax relief, together with a solid business plan, is a strong

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