TAIU
UKIZUK Innovation ZonesA TAIU initiative

UKIZ/SEIS

Seed Enterprise

Investment Scheme.

A UK government scheme designed to encourage investment into qualifying early-stage companies by offering tax reliefs to eligible investors.

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

What is SEIS?

The Seed Enterprise Investment Scheme is a UK government scheme that offers Income Tax and Capital Gains Tax reliefs to eligible individual investors who buy new shares in qualifying early-stage companies. The company receives ordinary private investment; the reliefs go to the investor.

Why does it matter to founders?

It changes who will take your call. A large part of the UK angel market invests only where SEIS or EIS relief is available, because the relief materially changes their risk. Qualifying is therefore less about the money itself and more about access to the earliest layer of British capital.

Why does it matter to investors?

Eligible investors can claim Income Tax relief on the amount invested, may defer or exempt certain capital gains, and may claim loss relief if the company fails. The reliefs depend on the investor's own circumstances as well as the company's status.

Which companies may qualify?

Broadly, small, young, independent UK companies carrying on a genuine new trade with a permanent establishment in the UK, below the asset, age and employee thresholds set out below, issuing new full-risk ordinary shares to unconnected individual investors.

Limits and thresholds

The figures, with their source and date.

  • Maximum a company can raise under SEIS

    £250,000 (lifetime, across all SEIS investment)

    State aid and other risk-finance investment received can reduce what remains available.

    Effective 2023-04-06 · last verified 2026-08-15 · How the scheme works · HMRC / GOV.UK

  • Maximum gross assets at the time of investment

    £350,000

    Measured immediately before the shares are issued.

    Effective 2023-04-06 · last verified 2026-08-15 · Check that your company can use the scheme · HMRC / GOV.UK

  • Maximum trading age

    Under 3 years of qualifying trade

    Measured from when the company began the trade it is raising for.

    Effective 2023-04-06 · last verified 2026-08-15 · Check if this is new qualifying trade · HMRC / GOV.UK

  • Maximum full-time equivalent employees

    Fewer than 25

    Counted across the group where relevant.

    Effective 2023-04-06 · last verified 2026-08-15 · Check that your company can use the scheme · HMRC / GOV.UK

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

    £200,000

    An investor limit, not a company limit.

    Effective 2023-04-06 · last verified 2026-08-15 · How the schemes compare for Income Tax relief · HMRC / GOV.UK

  • Headline Income Tax relief for eligible investors

    50% of the amount invested

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

    Effective 2023-04-06 · 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 3 years of the share issue

    Money must be spent on the qualifying business activity it was raised for.

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

  • Capital Gains Tax reinvestment relief

    Relief on 50% of the investment, capped at £100,000 of gain

    Available on up to £200,000 invested, where Income Tax relief is claimed on the same investment.

    Effective 2023-04-06 · last verified 2026-08-15 · Relief when you reinvest a gain in Seed Enterprise Investment Scheme shares · HMRC / GOV.UK

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

A substantial part of the company’s trade must not consist of excluded activities. The list below is indicative; the definitive list and its exceptions are in HMRC’s guidance.

  • 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

Official sources

Advance assurance and applying

What is Advance Assurance?

An optional HMRC opinion, given before the shares are issued, on whether a proposed investment is likely to meet the scheme conditions on the information provided. Many investors ask for it. It is not a guarantee.

Understand Advance Assurance →

How does a company apply?

Advance assurance is requested through HMRC’s venture capital schemes service. After the shares are issued and the money is spent as required, the company submits a compliance statement so HMRC can authorise investor certificates.

Official sources

After investment

The company must spend the money on the qualifying activity within the time limit, must not breach the conditions during the relevant period, and submits a compliance statement to HMRC. Once accepted, HMRC issues certificates the investors use to claim their relief.

How EIS differs →Find relevant investors →

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.

Official HMRC guidance