SEIS/EIS tax relief
Government incentives that provide private investors with tax breaks to help encourage them to invest.
Tax breaks based on the amount invested
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are government incentives that provide private investors with tax breaks to help encourage them to invest in early-stage companies.
SEIS permits an individual to invest in early start-up companies and receive a tax break based on the amount invested, up to an annual limit set by HMRC. The investor will also benefit from a capital gains tax exemption on any profits that arise from the sale of shares after three years. This scheme is focused on early start-up companies.
EIS permits an individual to invest in growing companies and receive a tax break based on the amount invested, again up to an annual limit set by HMRC. Like with SEIS, the investor will benefit from a capital gains tax exemption on any profits that arise from the sale of shares after three years. This scheme is focused on medium-size start-up companies.
Shares in both SEIS/EIS schemes do not attract inheritance tax as long as the shares are held for at least two years. Further, if the shares are sold at a loss, these losses can be offset against the investors capital gains tax.
At LYA, we can help eligible companies with applying for Advance Assurance from HMRC. This is a vital process that allows the investor to claim back the tax relief. This application needs to be performed before any investment is received. We can also help issue the necessary certificates to investors and help them with their personal tax obligations. This allows us to provide a full service to our clients so they can attract investment at a key stage in their business cycle.
Contact us today to see how we can help you.
Advance assurance
Companies raising money under SEIS or EIS often apply to HMRC for advance assurance, which gives investors comfort that the company is likely to qualify. We can help you prepare the information HMRC needs, and make sure your records support the relief claim afterwards.
Rules and limits change
Investment limits, company age limits and qualifying conditions are updated from time to time, so we check the current position with you before you raise money rather than relying on figures that may be out of date.
Planning your funding and your team
Raising investment is rarely the only decision. Our strategic business development service helps you plan forecasts and milestones that investors want to see, and share option schemes can reward the team who help you grow. If your business is developing new products or processes, you may also benefit from R and D tax credits, and our tax consultancy looks at the whole picture.
We work with businesses across Surrey and the South East. Find your nearest team or call us on 01372 374143.
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