There are two closely related schemes that are known as SEIS and EIS: or Seed Enterprise Investment Scheme and the Enterprise Investment Scheme. Essentially, both operate in the same way. Although SEIS is more advantageous, it has greater restrictions than EIS.
The first £150,000 of investment into a company can be eligible for SEIS and investors can claim 50% tax relief on amounts invested. EIS extends the inward investment eligible up to £12 million. With EIS investors can claim 30% tax relief on investment made.
Many private investors that invest in early-stage businesses do so because of the advantages offered to them through the schemes. The good news is that the majority of UK-registered early-stage businesses qualify although there are some restrictions on sectors and activities, as well as other criteria that must be met.
It is advisable to obtain Advance Assurance from HMRC before starting to approach potential investors as this is evidence that your business qualifies and this will reduce uncertainty for investors.
We at BOOM & Partners are well experienced in both schemes and can either help give you general guidance or hand hold you through applying for Advance Assurance by providing you with our S/EIS Advance Assurance Application pack. With this pack we will explain all the details and we will have done as much of the work for you as possible.
As will all our services and our approach, we can be as hands-on as is required to ensure that we offer best added value to you and your business.
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