The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are HMRC approved tax reliefs schemes which allows certain qualifying businesses to raise investment funds from individuals paying tax in the United Kingdom.  These schemes offer substantial tax reliefs to investors making it attractive for investors to invest and qualifying businesses seeking investment.

Ashton Birch Solicitors can advice you if your business is eligible for SEIS or EIS and if you would like to obtain advance assurance or assistance with drafting suitable articles and shareholders’ agreement that satisfy the requirements. Please get in touch with us.  

EIS & SEIS

If you are a start up company, you would probably aim to qualify for SEIS before you move into EIS once established. In most cases, investors would like to see that your company has  received ‘advance assurance’, which is a confirmation given by HMRC to confirm if a company qualifies for SEIS/EIS scheme.  For obtaining an ‘advance assurance’ from HMRC a company must submit a formal compliance statement.

There are a few basic requirements for a company to qualify for SEIS, which includes assets less than £200K, business less than two years old, with fewer than 25 employees, and the company to raise not less than £150K through SEIS.  There is an ongoing requirement to report to HMRC on any changes to the company impacting the SEIS status.

A less popular EIS scheme allows investors tax relief for qualifying companies on an investment limited to a maximum of 20 percent shares. For a company to qualify for EIS, among else, it must have fewer than 250 employees, value of the company must be less than £15million and a number of restrictions apply on individuals who can invest in a qualifying company through EIS.   

Ashton Birch Solicitors are experienced and can advise and assist you with your application to HMRC, prepare and review articles and shareholder agreements.  Please contact us to discuss your requirements.