What Is SEIS Tax Relief?
The Seed Enterprise Investment Scheme (SEIS) is a UK government initiative designed to encourage investment in early-stage businesses by offering generous tax reliefs to investors.
For start-ups, SEIS can unlock crucial funding. For investors, it offers attractive tax benefits such as:
- Up to 50% income tax relief on investments
- Capital Gains Tax (CGT) exemption on SEIS shares held for 3+ years
- Loss relief if the investment doesn’t succeed
At YRF Accountants, we help both companies and investors navigate SEIS, ensuring compliance and maximising the tax benefits available.
Benefits of SEIS Tax Relief
For Investors:
- 50% income tax relief on investments up to £200,000 per tax year
- Exemption from Capital Gains Tax on profits from SEIS shares
- Ability to carry back investments to the previous tax year
- Loss relief if the company fails, reducing your risk
For Companies:
- Attract new investors with HMRC-approved tax benefits
- Raise up to £250,000 in SEIS funding
- Build credibility with investors through SEIS compliance
- Potential to move into EIS funding after SEIS
Who Qualifies for SEIS?
For Companies:
- Must be UK-based and unquoted (not on the stock exchange)
- Trading for less than 2 years
- Fewer than 25 employees
- Gross assets of less than £350,000
- Carrying out a qualifying trade (certain industries like property, finance, and legal services are excluded)
For Investors:
- Must be a UK taxpayer
- Cannot hold more than 30% of the company
- Can invest up to £200,000 per tax year and claim relief
How to Claim SEIS Tax Relief
For Companies:
- Apply for Advance Assurance from HMRC (to show investors you qualify).
- Issue SEIS-compliant shares to investors.
- Submit a SEIS1 compliance statement to HMRC.
- Provide investors with an SEIS3 certificate so they can claim tax relief.
For Investors:
- Receive your SEIS3 certificate from the company.
- Use it to claim income tax relief through your Self Assessment.
- Apply for Capital Gains Tax exemption or loss relief where relevant.
How YRF Accountants Can Help
At YRF Accountants, we provide end-to-end SEIS advisory and compliance services for both start-ups and investors:
- Preparing and submitting Advance Assurance applications to HMRC
- Advising on share structure and company compliance
- Preparing and filing SEIS1 compliance forms
- Ensuring timely issue of SEIS3 certificates to investors
- Advising investors on claiming SEIS relief through Self Assessment tax returns
- Strategic tax planning for companies moving from SEIS to EIS
Why Choose YRF Accountants?
- Proven expertise in helping start-ups and investors maximise SEIS benefits
- Experienced in HMRC compliance and reporting
- Based in Bolton and Manchester, serving clients across the UK
- Dedicated support from application to investor tax claims
SEIS FAQs
How much income tax relief can I claim under SEIS?
You can claim up to 50% of your investment, up to £200,000 per tax year.
Can a company use both SEIS and EIS?
Yes. Companies can raise up to £250,000 under SEIS and then move on to EIS once SEIS limits are reached.
How do investors claim SEIS tax relief?
Using the SEIS3 certificate issued by the company, investors can claim relief on them Self Assessment tax return.
What if my SEIS investment fails?
You can claim loss relief, offsetting the loss against your income or capital gains, reducing your risk exposure.
Book Your SEIS Consultation
Whether you’re a start-up looking to raise funds, or an investor seeking tax-efficient opportunities, YRF Accountants can guide you every step of the way.
Book a free SEIS consultation
Local SEIS specialists in Bolton & Manchester, serving clients nationwide.