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Free Consultation
SEIS/EIS

Looking to raise investment and reward your investors?

If so, SEIS/EIS could unlock funding with serious tax benefits.

SEIS/EIS

What is SEIS/EIS?

SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are two UK government-backed initiatives designed to help early-stage and growing businesses raise investment. They do this by offering attractive tax reliefs to individual investors who purchase new shares in your company. SEIS is aimed at very early-stage businesses, while EIS supports slightly more established ones. By reducing the financial risk for investors, these schemes make your company a more appealing opportunity — helping you secure funding faster and on better terms.

Government Backed Incentive
Attracts Early Stage Investors
Supports Business Growth
Offers Generous Tax Reliefs
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0330 043 6198
SEIS/EIS

How It Benefits You

Investor Incentive

Offer up to 50% income tax relief to make your business more attractive to investors.

Capital Gains

Investors can benefit from CGT exemptions on qualifying share disposals after 3 years.

Risk Reduction

Loss relief provides a safety net for investors if the business doesn’t succeed.

Easier Funding

SEIS/EIS improves your chances of raising early-stage capital on better terms.

Growth Focused

Designed to support innovation, scale-ups, and long-term development.

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SEIS/EIS

Who Can Benefit?

Early-Stage Start Ups
Newly formed companies looking to raise their first round of funding can attract investors through SEIS tax reliefs.
Growing Businesses
Scale-ups planning to secure larger investments can benefit from EIS while offering investors generous long-term incentives.
UK-Based Companies
Businesses with a UK presence and long-term growth plans can use SEIS/EIS to fund innovation and expansion.
See If You're Eligible
SEIS/EIS

The Process

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1

Check Eligibility

We assess your company’s structure, age, and activities to confirm it qualifies.
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2

Advance Assurance

We prepare and submit your application to HMRC to reassure potential investors.
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3

Raise Investment

You issue shares and secure funding from investors under the approved scheme.
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4

Claim Relief

We support your investors in claiming their tax relief through HMRC’s process.
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Orbit Tax Incentives

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10 Exchange Quay, Manchester, M5 3EQ
enquire@orbittaxincentives.com
0330 043 6198
SEIS/EIS

Frequently Asked Questions

How much can I raise through SEIS and EIS?
Under SEIS, you can raise up to £250,000 in total investment. For EIS, the funding cap is much higher — up to £5 million per year and £12 million over the company’s lifetime. These limits apply across all investors and are subject to additional rules on company age, structure, and how the funds are used.
Can I use SEIS and EIS for the same company?
Yes - companies often raise investment through SEIS first, then move on to EIS as they grow. However, SEIS shares must be issued before any EIS shares. It’s important to plan the timing and structure carefully to ensure both schemes remain valid and don’t conflict.
What is Advance Assurance and do I need it?
Advance Assurance is a non-binding confirmation from HMRC that your company is likely to qualify for SEIS or EIS. While it’s not mandatory, most investors will expect it before committing funds. It gives them confidence that their investment will qualify for the intended tax relief.
What can SEIS/EIS funds be used for?
Funds raised through SEIS/EIS must be used for qualifying business activities, typically including product development, staff costs, marketing, and other growth-related expenses. The money must be spent within two years of the investment and cannot be used for debt repayment, acquisition of shares, or other restricted activities.
Can investors be involved in the business?
Yes - investors can take an active interest or provide mentorship, but they cannot be employees or hold a controlling interest. They must also not be “connected” to the company (e.g. close family members of directors) if they want to claim the full tax benefits.
Do I need to issue new shares for SEIS/EIS?
Yes - tax relief under SEIS and EIS is only available for the purchase of new, ordinary shares in the company. You cannot offer relief on previously issued or transferred shares. The shares must also meet specific conditions, such as being full-risk, non-redeemable shares with no preferential rights.
What is the investor limit under SEIS and EIS?
For SEIS, an investor can invest up to £200,000 per tax year, while under EIS they can invest up to £1 million - or £2 million if at least £1 million is invested in knowledge-intensive companies. These limits are individual to the investor and can be used across multiple companies.
How long do shares need to be held for tax relief?
To retain the full tax benefits, SEIS and EIS shares must be held for a minimum of three years. If shares are sold, gifted, or otherwise disposed of within this period, the investor may lose their relief and face a tax charge on the gains.
What happens if I use the funds incorrectly?
If SEIS/EIS funds are used for non-qualifying purposes, your company risks breaching the scheme’s conditions. This can lead to HMRC withdrawing the tax relief from your investors, which may result in reputational damage and potential liability. It’s crucial to understand and follow the permitted use of funds - Orbit can help ensure compliance from the outset.
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