VIEW PROFILEClair
Dart
Partner
View Clair's profileSEIS & EIS
If you are looking to attract investment into your business our EIS and SEIS specialists can advise you on these Government backed schemes, which offer valuable tax reliefs to individual investors in high growth businesses.
The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are Government backed schemes designed to support UK innovation by encouraging investment in high growth businesses.
The schemes provide valuable tax relief to individual investors, but are different with SEIS focussed on very early stage companies and EIS targeted at larger, longer established companies. The table below outlines the differences between the schemes.
Our EIS and SEIS specialists provide advice to businesses on
- The right scheme for your business
- Ensuring your application is compliant with the latest HMRC guidelines
- Applying for advance assurance
| Seed EIS | EIS | |
| Relief & Benefits Tax Breaks for Investors | 50% Income Tax Credit regardless of individual’s marginal rate, to £200,000 annual maximum.
Investor subscribes for shares on own behalf. Definition of eligible shares is the same as EIS. Seed EIS relief conditional on investment in company of less than 30% and shares held for a minimum of 3 years. Deferral Relief for earlier Capital Gains. Disposal of SEIS shares CGT free after three years. Capital Loss Relief (Seed EIS loss relief) against income tax, rather than current and future years’ Capital Gains. |
30% Income Tax Credit against income of current or previous year.
Tax relief is given on a maximum of £1 million invested No Capital Gains Tax on disposal if shares held for 3 years Deferral Relief for earlier Capital Gains Capital Loss Relief against income tax, rather than current and future years’ Capital Gains |
| Tax Relief Conditions Qualifying Trading Company |
Must be unquoted and trading less than 3 years
Must be a standalone company or the parent company of a group Must carry on a qualifying trade and have a UK permanent establishment. Max Gross Assets £350,000. Fewer than 25 employees Tax favoured cumulative investment limit of £250,000 for the company. |
Must be unquoted
Must be a standalone company or the parent company of a group Must have been trading for less than 7 years or had a previous EIS fundraising Must carry on qualifying trade and have a permanent establishment in the UK Max Gross Assets £15 million before the Share issue and £16m after Fewer than 250 employees Not more than 20% of activities consist of excluded trades
|
| Application of Funds | Funds raised by Share issue must be used to fund a qualifying activity
No previous Seed EIS or VCT investment in company. Within 3 years of issue of shares all monies raised must be spent on a qualifying activity. |
Funds raised by Share issue must be:
Applied for purpose of Business Activity 100% of funds used within 24 months of Share issue, or commencement of trade, if later. Used to fund a qualifying activity No more than £5m raised in any 12 month period from investments made under EIS, Venture Capital Trust and Corporate Venturing Scheme Lifetime limit of £12m or £20m for knowledge intensive companies |
| Qualifying Individuals | UK Tax Payer
Neither a current employee or associate of an employee, unless also a director. Subscribe for cash in “full risk” ordinary shares with no preferential rights. No pre-arranged exit. |
UK Tax Payer
Subscribe for cash in “full risk” ordinary shares with no preferential rights. Some relaxation under consultation. Need not be UK Resident If connected with the company income tax relief and CGT disposal relief are not available, however, Capital Loss Relief and Deferral Relief remain available. Directors, employees and their associates are treated as connected Individuals who, with their associates own more than 30% of the shares Non exec directors are not automatically connected, if unpaid. |
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Sarah
MessrutherSenior Manager, Mixed Tax
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SEIS & EIShttps://www.alliotts.com/expertise/personal-tax/seis-eis/
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SEIS & EIS
Clair provides our clients with support for their EIS and SEIS certification throughout the process in respect of the taxation relief available and the advance assurance process. Clair will help to ensure that the application is compliant with the latest HMRC guidelines and help with the completion of the relevant submissions and certificates as required so that you can focus on finding the investors.
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Sarah is a qualified Chartered Accountant and Chartered Tax Adviser. She has worked at Alliotts for over ten years, after a career change from teaching. She started in our audit and accounts teams, before transferring to our tax team in 2018. Her role involves a variety of taxes and areas: personal and corporate tax advisory; individual, companies and trusts compliance.
She is carving out a niche in advising on tax and international mobility, perhaps inspired by a letter about her own position during a stay in China.
Testimonials
“I recently engaged Alliotts for my UK tax needs, and I cannot recommend them highly enough, especially Sarah Messruther, who handled my case. My situation was quite complex, having spent several years as an expat in Saudi Arabia and now repatriating to the UK. Navigating the UK tax system after years abroad was daunting, and I started this process with a lot of uncertainty and concern about compliance and asset protection.
Sarah was incredibly patient and knowledgeable throughout. She took the time to thoroughly understand my circumstances and provided clear, comprehensive advice for both my 24/25 UK tax report and consultancy for the 25/26 tax year. Every question I had, no matter how small, was addressed promptly and in detail. Sarah’s guidance gave me absolute confidence that I am acting fully within the law while also protecting my assets.
The peace of mind I’ve gained from working with Alliotts and Sarah is truly invaluable. The investment in their services has more than paid for itself in clarity, reassurance, and expert support during this important transition. If you’re looking for a firm that combines expertise with genuine care and patience, I wholeheartedly recommend Alliotts.”
avianne karamath
PRIVATE CLIENT