Enterprise

First, the distinction

SEIS and EIS are not government funding for start-ups. They are tax reliefs for eligible individual investors, designed to encourage private investment into qualifying companies. The company receives private money; the investor receives the relief.

In plain English

SEIS or EIS?

Earlier stage, or a later stage of eligible growth.

The schemes are not alternatives to choose between on preference. Which one is available depends on the company’s age, size and history — and companies commonly use SEIS first, then EIS. Do not treat this comparison as the eligibility test.

• StageSEISEarliest stage — pre-revenue or very early tradingEISLater stage of eligible growth, including after SEIS
• Company raise limitSEIS£250,000 lifetimeEIS£10m per year, £24m lifetime (£20m and £40m if knowledge-intensive)
• Gross assetsSEIS£350,000 before investmentEIS£30m before, £35m after
• EmployeesSEISFewer than 25 FTEEISFewer than 250 FTE (500 if knowledge-intensive)
• Age limitSEISUnder 3 years of qualifying tradeEISWithin 7 years of first commercial sale (10 if knowledge-intensive)
• Investor Income Tax reliefSEIS50%EIS30%
• Investor annual limitSEIS£200,000EIS£1m (£2m with knowledge-intensive)
• OrderSEISSEIS shares must generally be issued before EIS sharesEISEIS follows SEIS; timing errors can invalidate the SEIS claim

Limits and thresholds

• Maximum a company can raise per 12 months

  £10 million (£20 million for a knowledge-intensive company)

  Counts all risk-finance state aid received in the period, including SEIS and VCT. Specified Northern Ireland companies are limited to £5 million (£10 million if knowledge-intensive).

  Effective 2026-04-06 · last verified 2026-08-15 · corrected at last check · Limits on money raised · HMRC / GOV.UK

  Previously published by UKIZ: £5 million (£10 million for a knowledge-intensive company)

• Maximum lifetime risk-finance investment

  £24 million (£40 million for a knowledge-intensive company)

  Across SEIS, EIS, VCT and other qualifying risk finance, including subsidiaries and acquired businesses. Specified Northern Ireland companies are limited to £12 million (£20 million if knowledge-intensive).

  Effective 2026-04-06 · last verified 2026-08-15 · corrected at last check · Limits on money raised · HMRC / GOV.UK

  Previously published by UKIZ: £12 million (£20 million for a knowledge-intensive company)

• Maximum gross assets

  £30 million before the investment, £35 million immediately after

  Measured across the group. Specified Northern Ireland companies remain at £15 million before and £16 million after.

  Effective 2026-04-06 · last verified 2026-08-15 · corrected at last check · Check that your company can use the scheme · HMRC / GOV.UK

  Previously published by UKIZ: £15 million before the investment, £16 million immediately after

• Maximum full-time equivalent employees

  Fewer than 250 (fewer than 500 for a knowledge-intensive company)

  Counted across the group at the time of the share issue.

  Effective 2012-04-06 · last verified 2026-08-15 · Check that your company can use the scheme · HMRC / GOV.UK

• Age limit for a first risk-finance investment

  Within 7 years of the first commercial sale (10 years for a knowledge-intensive company)

  Exceptions exist, including for companies entering a genuinely new product or geographic market where the raise is at least 50% of average annual turnover over the last five years. For knowledge-intensive companies the 10 years can run from the first commercial sale or from annual turnover exceeding £200,000.

  Effective 2015-11-18 · last verified 2026-08-15 · Limits on the age of your company · HMRC / GOV.UK

• Maximum an individual investor can claim relief on per tax year

  £1 million, or £2 million where the excess is in knowledge-intensive companies

  An investor limit, not a company limit. The £2 million figure requires at least £1 million to be invested in knowledge-intensive companies.

  Effective 2018-04-06 · last verified 2026-08-15 · How the schemes compare for Income Tax relief · HMRC / GOV.UK

• Headline Income Tax relief for eligible investors

  30% of the amount invested

  Subject to the investor having sufficient Income Tax liability and meeting the conditions.

  Effective 2012-04-06 · last verified 2026-08-15 · How the schemes compare for Income Tax relief · HMRC / GOV.UK

• Minimum holding period

  3 years

  Relief can be withdrawn if shares are disposed of, or conditions breached, within the period.

  Effective 2012-04-06 · last verified 2026-08-15 · Capital Gains Tax exemption when you sell your investment · HMRC / GOV.UK

• Time limit to spend the money

  Within 2 years of the share issue, or of starting to trade if later

  Money must be used for growth and development of the qualifying activity.

  Effective 2012-04-06 · last verified 2026-08-15 · Check what you can do with money raised · HMRC / GOV.UK

• Capital Gains Tax deferral relief

  Unlimited amount of gain can be deferred

  The investment must be made between one year before and three years after the disposal. The deferred gain becomes chargeable on disposal, cancellation, breach of the conditions or becoming non-resident.

  Effective 2012-04-06 · last verified 2026-08-15 · Defer when you pay Capital Gains Tax (deferral relief) · HMRC / GOV.UK

Knowledge-intensive companies

Higher limits, harder conditions.

Companies carrying out substantial research, development or innovation can raise more, for longer, and their investors face higher personal limits — but the qualifying conditions are evidence-based and tested.

Key conditions

• New, full-risk ordinary shares

  Shares must be newly issued, paid up in cash in full, and carry no preferential rights to assets on a winding up. Loans converted after the event generally do not work.

• The risk-to-capital condition

  The company must be seeking to grow and develop over the long term, and the investment must carry a genuine risk of loss of capital greater than the expected return. Structures designed principally to preserve capital do not qualify.

• A qualifying trade

  Most trades qualify, but a substantial part of the activity must not be an excluded activity.

• A UK permanent establishment

  The company must have a permanent establishment in the UK. Incorporation elsewhere does not automatically prevent a claim, but the position needs checking carefully.

• Independence and control

  The company must not be under the control of another company, and there are detailed rules on subsidiaries, connected investors and existing shareholdings.

• Use of the money

  Funds must be used for the qualifying business activity — growth and development — not to buy another business or an existing trade.

What activities may not qualify

• Dealing in land, commodities, futures, shares or other financial instruments
• Banking, insurance, money-lending, debt factoring, hire purchase and other financial activities
• Property development
• Leasing, or receiving royalties or licence fees (with limited exceptions for own intellectual property)
• Legal or accountancy services
• Farming, market gardening, forestry and timber production
• Operating or managing hotels, nursing homes or residential care homes
• Generating or exporting electricity or heat where a subsidy is received
• Coal and steel production, shipbuilding

After investment

The money must be spent on growth and development within the time limit, the conditions must hold throughout the relevant period, and the company files a compliance statement so HMRC can authorise the certificates investors need.

Every figure on this page last verified against GOV.UK on 15 August 2026 · verification record

This is educational orientation, not tax, legal or immigration advice, and not an HMRC determination. Eligibility depends on the full circumstances of the company, the investor and the share issue under the rules in force at the time. Always check current HMRC guidance and take professional advice.