The Seed Enterprise Investment Scheme (SEIS)
SEIS was designed to boost economic growth in the UK by promoting new enterprises and entrepreneurship at the earliest stage.
In the last tax yer alone, 1,815 companies secured £157 million through the SEIS scheme and in total it has facilitated nearly £2 billion of investment since its launch, supporting over 16,000 companies at the earliest stages of their growth journeys.
The tax benefits of SEIS depend on the individual circumstances of each client and may be subject to change in future.
Investors can claim up to 50% income tax relief on the value of their investment as long as they have sufficient income tax liability.
For example, say you invested £100,000 in SEIS-eligible companies, your income tax relief would be £50,000.
Any capital gain is CGT free if shares are held for a minimum of 3 years and income tax relief was claimed.
CGT can be reduced on gains made elsewhere by up to 50%. To benefit, you must have had income tax relief in the same year.
If the shares are disposed of at a loss, you can elect that the loss be set against any income tax of that year or carry back to the previous tax year.
SEIS shares qualify for 100% Inheritance Tax (IHT) relief via Business Property Relief (BPR) on the first £1 million of combined business and agricultural assets, provided they are held for at least two years and are still owned at the time of the investor’s death. Any value above £1 million will qualify for 50% IHT relief. These changes will come into effect on April 6th 2026.