SEIS & EIS

The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) have quite a few similarities but it is important to understand the differences and how they work with each other.

If you are looking to raise money for your company from outside investors, you may be able to make the deal more attractive by offering the benefit of EIS or SEIS relief.  

HMRC describes EIS as being designed so that your company can raise money to help grow your business whereas SEIS is targeted at the smaller company when it’s starting to trade.

SEIS relief is more generous than EIS to reflect the additional risks that these investments carry.

In both cases the trade must be in the UK, there are restrictions on the types of trades that qualify, and the company cannot be in financial difficulties or receiving state aid. 

 

As well as directly using the money in its trade, it is possible for a company to raise money to use in preparing to trade and for qualifying R&D.

Investors cannot have had a previous connection with the trade or the company and cannot be or become an employee.

If you think this might be something that could benefit your company, get in touch today to see how we can help you.

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