What tax relief is available on SEIS investments?
The Seed Enterprise Investment Scheme, or SEIS, offers tax reliefs to encourage investment in very early-stage companies, which are higher risk than most. The reliefs can include income tax relief on the amount invested and reliefs connected to capital gains. The rules are detailed and the risk is significant.
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Check what you're owed →SEIS is aimed at the earliest stage of company growth, helping small start-ups raise initial funding by offering investors tax incentives that are generally more generous than its sister scheme for slightly larger companies. The main relief reduces your Income Tax bill based on what you invest in qualifying shares, within set limits and subject to conditions.
There are additional reliefs linked to capital gains, including the potential to reduce a chargeable gain by reinvesting it under the scheme, and relief if the investment is later sold at a loss or becomes worthless, all under specific rules. As with the Enterprise Investment Scheme, the company, the shares and the investor must each meet strict qualifying conditions.
This is a factual, high-level overview, not advice. SEIS investments are among the higher-risk options because they back very young companies, and the tax rules are complex and depend on your circumstances and figures that change over time. Anyone considering SEIS should check the current rules on GOV.UK and think about professional advice first.
How to understand SEIS tax relief
- Check the qualifying rules. Read the conditions for the company, shares and investor on GOV.UK before considering SEIS.
- Understand the reliefs. Learn the income tax and capital gains reliefs, the limits and the holding requirements that apply.
- Assess the risk. Recognise that SEIS backs very early-stage companies and carries significant risk.
- Get advice and claim properly. Consider professional advice and follow the correct process to claim any relief you are entitled to.
Frequently asked questions
- How does SEIS differ from EIS?
- SEIS targets the very earliest-stage companies and generally offers more generous reliefs than EIS, reflecting the higher risk involved.
- What is the main SEIS relief?
- A reduction in your Income Tax bill based on the amount invested in qualifying shares, within limits and subject to conditions.
- Are there capital gains reliefs?
- Yes. SEIS can offer reliefs connected to capital gains, including reducing a gain by reinvesting and relief on losses, under the rules.
- Is SEIS high risk?
- Yes. SEIS backs very early-stage companies, making it one of the higher-risk options despite the potential tax reliefs.
MoneyFinder is an independent sign-posting service that helps you find financial support you may be entitled to. We are not a government body and do not provide financial advice. Figures are taken from the official sources cited above and were correct when last checked — always confirm current details on the linked GOV.UK pages.