The Seed Enterprise Investment Scheme supports qualifying investment in eligible early-stage companies. It has its own conditions and should not be treated as EIS with a different name.
Understand the reliefs
A qualifying subscription may attract Income Tax relief. A later gain on the SEIS shares may be exempt if the relevant conditions are met.
Reinvestment relief for a separate capital gain is another question. Do not assume that investing the proceeds makes the entire earlier gain exempt.
Use the official SEIS guidance for current limits and claim requirements.
Check both sides of the investment
The company’s age, size, activities and funds raised are relevant. The investor’s employment, directorship and connection with the company also need review.
Qualifying shares and the use of subscription money must meet the scheme rules. An informal assurance that a business is a start-up is not enough.
Keep the evidence
Obtain the required compliance documentation and retain subscription records. Holding conditions and later changes can affect relief already claimed.
We can assess the tax eligibility and reporting questions. Tax relief and the commercial merits of backing a young business should be considered separately.