SEIS, or the Seed Enterprise Investment Scheme, is a UK government-backed tax relief program designed to encourage investment in small, early-stage companies. It allows individual investors to claim tax relief on investments made in qualifying companies, which must meet certain criteria such as being unlisted, having fewer than 25 employees, and not having raised more than £200,000 in funding.
SEIS is intended to help small businesses raise the capital they need to grow and develop, and to encourage more people to invest in such companies. Investors can claim back up to 50% of the value of their investment through SEIS, and any profits made from selling their shares in the company may also be exempt from capital gains tax.
SEIS is a popular option for early-stage companies looking to raise funding, as it can make investment in such companies more attractive to potential investors. It is worth noting that SEIS is a complex area with strict rules and eligibility criteria, so it is advisable for companies and investors to seek professional advice before proceeding with an SEIS investment.
Click here to learn more about how to apply for SEIS.