The Seed Enterprise Investment Scheme (SEIS)

The Seed Enterprise Investment Scheme (SEIS) is designed to boost economic growth in the UK by encouraging investment in new enterprises and entrepreneurship. 

As a law firm for startups, our solicitors understand the entrepreneurial mindset and regularly advise companies, funds and investors on all aspects of SEIS investments.

We can walk you through the legal requirements from start to finish to ensure everything is correct - including your shareholders' agreement, articles of association, and all the other documents needed to complete your application successfully.

• Advance assurance from HMRC
• Advice on corporate structures
• Advice on SEIS rules and regulatory issues
• Articles of association
• Due diligence
• Investment memorandums
• Negotiating terms of investment
• Shareholders' agreements

What tax benefits are available?

SEIS can potentially provide substantial tax benefits to investors:

1. Income Tax Relief: Investors can claim up to 50% income tax relief on the cost of the shares, up to a maximum investment of £200,000 per tax year (doubled from £100,000 in the 2023/24 tax year).
    
2. Capital Gains Tax (CGT) Relief: If the shares are held for at least three years, any gains on the shares are free from CGT. Additionally, any gains from other assets reinvested into SEIS shares can receive a 50% CGT relief.
    
3. Loss Relief: If the investment fails, investors can claim loss relief, allowing them to offset the loss against their income tax.
    
4. Inheritance Tax Relief: SEIS shares can qualify for Business Property Relief, meaning they could be free from inheritance tax if held for at least two years.

It is important to note that following the SEIS rules for at least three years after making the investment is crucial. Failure to do so may result in the withholding or withdrawal of tax reliefs from your investors.

Given the complexity and potential benefits of the SEIS, it's advisable to consult the HMRC website or speak to a professional financial advisor for the most current status or any further changes to the scheme.

Talk to our SEIS solicitors

If you want legal advice on SEIS, you've come to the right place. With our extensive experience, we can help you avoid legal pitfalls and secure capital and funding from the seed stage of your company.

We also understand controlling costs is critical when you start your business. Our solicitors have helped numerous startups get off the ground, and we tailor our services to your needs.

We have offices in London, Brighton, Bath, Eastbourne, Hastings and Ulverston, and we work with startups, small businesses and investors across the country.