EIS & SEIS,
investor-ready.
Unlock significant investor tax reliefs through HMRC Advance Assurance and ongoing scheme compliance support.
What Are EIS and SEIS?
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are HMRC-approved investment schemes designed to help UK companies raise equity finance from private investors. In return, investors receive significant income tax relief, capital gains tax exemptions, and loss relief — making investment in qualifying companies substantially more attractive.
For early-stage and growing companies, EIS and SEIS can be transformative funding tools. But the eligibility rules are complex and the compliance requirements are ongoing. We manage the entire process from initial eligibility assessment through to investor compliance certificates.
Investor Benefits
EIS offers investors 30% income tax relief on investments of up to £1 million per tax year — meaning an investment of £100,000 reduces the investor's income tax bill by £30,000. EIS shares also qualify for CGT deferral relief, allowing investors to roll over capital gains from other disposals into an EIS investment and defer the gain until the shares are sold. After holding the shares for at least two years, EIS investments may also qualify for inheritance tax exemption under business property relief, making them attractive for estate planning as well as growth investment. If the investment performs poorly, loss relief is available to offset the loss against income tax.
SEIS offers even more generous relief for investors in very early-stage companies: 50% income tax relief on investments of up to £200,000 per tax year. Like EIS, SEIS investments can qualify for capital gains exemption and loss relief. The higher relief rate reflects the greater risk associated with seed-stage investment — and makes SEIS an exceptionally powerful fundraising tool for startups that can demonstrate eligibility.
Both schemes require HMRC Advance Assurance before investors commit funds — a letter from HMRC confirming that the company meets the qualifying conditions. We prepare and submit the Advance Assurance application on your behalf, handling any queries HMRC raises during the process. Once investment has been received, we prepare the compliance statement and issue investor certificates (EIS3 or SEIS3), which investors need to claim their tax relief. We also monitor compliance throughout the relevant holding period to ensure no inadvertent breach occurs.
Why Choose Brathwaite?
HMRC Advance Assurance application — confirming eligibility before investors commit
Full eligibility assessment for EIS and SEIS qualifying conditions
S/EIS compliance statements (S/EIS3) issued to investors
Ongoing compliance monitoring throughout the holding period
Advice on share structures compatible with EIS/SEIS requirements
Coordination with investor solicitors and fund managers
Frequently Asked Questions
What is the difference between EIS and SEIS?
SEIS (Seed Enterprise Investment Scheme) is designed for very early-stage companies — typically startups in their first two years — and offers more generous tax reliefs to compensate for the higher risk. EIS (Enterprise Investment Scheme) is for more established growing companies. Both require HMRC approval and specific eligibility conditions.
How much can investors receive in tax relief?
Under SEIS, investors can claim 50% income tax relief on investments up to £200,000 per year (as of 2024/25), plus capital gains exemption and loss relief. Under EIS, investors can claim 30% income tax relief on investments up to £1 million per year (or £2 million in knowledge-intensive companies), with similar capital gains and loss benefits.
What is HMRC Advance Assurance?
Advance Assurance is a letter from HMRC confirming that, based on the information provided, they would expect to grant EIS or SEIS status to an investment. It is not a guarantee, but it provides significant comfort to investors before they commit funds. We prepare and submit the Advance Assurance application on your behalf.
Are there restrictions on how EIS/SEIS funds can be used?
Yes. Funds raised through EIS or SEIS must be used for a qualifying business activity within a specified period (generally 2 years for SEIS, 3 years for EIS). There are strict rules on the type of business, the age of the company, and how funds may be deployed. We advise on compliance throughout the investment period.