Frampton & Co Chartered Accountants
The SEED Enterprise Investment Scheme [SEIS]
The UK Seed Enterprise Investment Scheme (SEIS) is a government tax-relief scheme that aims to encourage private individuals to invest in very early-stage (i.e. seed) businesses. The scheme was launched in 2012 as part of a broader initiative to boost economic growth and innovation in the UK by supporting new enterprises and entrepreneurship
The SEIS offers generous tax benefits to investors who buy new shares in eligible companies. Investors can invest up to £100,000 every tax year and receive a 50% income tax relief on their investment. They can also claim capital gains tax exemption on any gains from the sale of SEIS shares, as well as loss relief if the company fails
Frampton & Co are proud to represent a comprehensive investment client-base who trusts their advice in investing their finances wisely through schemes such as the SEIS.
What are the benefits of Frampton & Co managing my EIS portfolio?
The SEIS is one of the most attractive schemes for investors and startups in the UK, as it reduces the risk and increases the return of investing in new ventures. There are various rules and conditions that must be followed by both parties to ensure that the tax reliefs are valid and not withdrawn - therefore, with our comprehensive portfolio of investment clients, Frampton & Co is a strong choice for acting as your representative in applying for, or investing through, the SEIS.
We save you considerable time and stress by handling the administration and liaising with HMRC on your behalf, ensuring that your company meets all the requirements and avoids common pitfalls. Frampton & Co have the expertise to maximise your chances of getting approved, attract investors and use the funds raised and comply with the rules.
Your company must use the money raised by the SEIS within three years of the share issue for either:
- A qualifying trade or preparing to carry out a qualifying trade
- Research and development that is expected to lead to a qualifying trade
- Buying shares in a qualifying 90% subsidiary that uses the money for a qualifying business activity
We also have a wealth of expertise in relation to the more comprehensive Enterprise Investment Scheme which provides income tax relief of 30% on investments up to £1 million per year in eligible companies.
How to get started
- Your business must carry out a new qualifying trade that is not excluded by the scheme (e.g. banking, legal services, property development, etc.)
- Your business must be established in the UK and not trade on a recognised stock exchange.
- You must have gross assets of no more than £200,000 and fewer than 25 full-time equivalent employees when the shares are issued.
- You must not have received any previous investment through the Enterprise Investment Scheme (EIS) or from a venture capital trust (VCT).
- Your company must not be controlled by another company or you, as the owner, be a member of a partnership.
