The Seed Enterprise Investment Scheme (SEIS) is a valuable tool for startups, allowing them to raise a seed round of investment of upto £150,000 whilst giving investors tax benefits on their investment.

 

Requirements for Startups

  • Cannot be a listed company
  • Must have fewer than 25 employees
  • Gross assets must be less than £200,000
  • Maximum raise is £150,000
  • The trade must be less than 2 years old
  • Must be a UK resident company
  • Must carry out a qualifying trade

 

Benefits for Startups

  • Extra incentive to give to investors
  • £150,000 is a good seed amount for most startups

 

Requirements for Investors

  • Maximum investment is £100,000
  • Shares must be held for three years
  • Shares must be fully paid up in cash
  • Shares must be full risk ordinary shares and not carry any preferential rights
  • Can’t own more than 30% of the company’s issued share capital
  • Cannot be an employee of the company

 

Benefits for Investors

  • Tax relief at 50% on investment
  • Can carry relief back to previous tax years
  • Disposal of SEIS shares exempt from capital gains tax

 

If you’d like to find out more about SEIS and see if it can benefit your startup, get in touch with Paul.

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