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The tax reliefs compared

SEIS vs EIS: A Side-by-Side Comparison for Investors

SEIS and EIS are both UK government-backed tax incentive schemes designed to encourage investment into early-stage companies. While they share the same underlying philosophy, they target different stages of company growth and offer different levels of tax relief. Understanding the distinctions is essential for investors deciding how to allocate capital across these two complementary schemes.

Head-to-Head Comparison

Feature

SEIS

EIS

Income Tax Relief

50%

30%

Max Annual Investment

£200,000

£2,000,000

Max Company Raise

£250,000

£12,000,000

Max Company Age

< 3 years

< 7 years (< 10 for KICs)

Max Employees

< 25

< 250

Max Gross Assets

£350,000

£15,000,000

CGT Exemption

Yes (on SEIS shares)

No (but deferral available)

Loss Relief

Yes

CGT Deferral

No (reinvestment relief instead)

Yes

IHT Relief

Yes (after 2 years via BPR)*

Minimum Hold

3 years

Carry Back

1 tax year

Qualifying Activities

Must be new trade

Broader range

*IHT relief subject to Business Property Relief qualifying conditions.

When SEIS Makes More Sense

SEIS is ideal for investors seeking the highest possible income tax relief (50%) and who are comfortable with the higher risk profile of pre-seed companies. It is particularly attractive for investors looking to reduce a specific year's income tax liability, those with capital gains they wish to shelter using CGT reinvestment relief, or those who want exposure to the earliest and potentially highest-growth stage of a company's journey. The lower investment limit of £200,000 per year also makes it accessible to a wider range of investors.

When EIS Makes More Sense

EIS suits investors with larger capital allocations, entrepreneurs looking to defer CGT from a recent business sale, and those who prefer companies with more established traction. The £1 million annual limit (rising to £2 million for knowledge-intensive companies) makes it suitable for significant portfolio allocations. CGT deferral relief is a unique EIS feature that SEIS does not offer, making it particularly powerful for investors sitting on unrealised gains.

Using Both Together

Many sophisticated investors use SEIS and EIS together as complementary strategies. Haatch's dual-fund structure is designed precisely for this: the SEIS Fund invests at pre-seed, and the EIS Fund then follows on into the strongest performers at seed stage. This creates a natural portfolio construction where investors can access both the higher tax relief of SEIS and the larger deployment capacity and CGT deferral of EIS. Both funds can be invested in the same tax year.

Explore Both SEIS and EIS with Haatch

Want to explore both SEIS and EIS with Haatch? Our team can help you structure an allocation that maximises your tax relief across both schemes. Register your interest or speak with our investor relations team.

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Haatch Ventures LLP is a limited liability partnership registered in England with registration number OC421829 and is the manager of the Haatch SEIS Fund, Haatch EIS Fund, Haatch BBB Syndicate Fund, Blue Earth Syndicate & Haatch D2N2 ESAIF. Haatch Ventures LLP is authorised and regulated by the Financial Conduct Authority (FCA registration number 916959).

This website constitutes a financial promotion approved by Haatch Ventures LLP (FCA registration number 916959) on the 27th November 2025. Haatch Ventures LLP is a limited liability partnership registered in England with registration number OC421829 and is the manager of the Haatch SEIS Fund, Haatch EIS Fund, Haatch BBB Syndicate Fund, Blue Earth Syndicate & Haatch D2N2 ESAIF. Please ensure you read the Information Memorandum for the relevant Fund in full, paying particular attention to the Risk Factors sections, before taking any investment decision and seek appropriate independent investment and tax advice. The tax benefit of SEIS & EIS depends on the individual circumstances of each client and may be subject to change in future. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up. Investors may not get back the full amount invested. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. Haatch Ventures LLP is authorised and regulated by the Financial Conduct Authority.