SEIS Scheme Solicitors

SEIS Scheme

The Seed Enterprise Investment Scheme (SEIS) is a UK government initiative run by HMRC designed to help start ups raise funds by rewarding investors with tax relief. SEIS is the most generous of initiatives run by HMRC designed to encourage start ups by offering substantial tax savings to investors in recognition of risk.  Tax relief is given to investors twice – upon subscription and then again upon disposal. 

We offer a starter pack discussed below to give your investors a steer on whether the business will qualify for SEIS tax relief.  This is helpful for encouraging investment.

The SEIS fixed fee starter pack

We offer a service provided by qualified solicitors covering:

  • Step-by-step guide on how to handle the investment procedure with telephone support with one of our SEIS experts;
  • Preparing the letter you send to HMRC seeking SEIS assurance. Most people also ask for EIS assurance at the same time so that they have that ready for when they move onto EIS investment as the limit under SEIS has been used up;
  • Checklist of documents HMRC will need.
  • Our starter package covers the basics and assumes the trade and business qualifies for SEIS/EIS- the details are set out here. We are more than happy to deal with specific technical questions and quote.

If you are not certain whether your trade will qualify under the SEIS/EIS legislation can obtain advance assurance from HMRC.  This is something we can do for you on a fixed fee.  We will quote the fee once we know more about your business.

SEIS Scheme – the basics

You need to think about:

  • The company – are the company’s eligibility requirements for SEIS met?
  • The investor – will he/she/they qualify for SEIS tax relief?

Some of the most important things to know about an SEIS investment include:-

  • SEIS generates an immediate tax saving for the investor – Investors benefit from tax relief of 50% on their investment.  So, if an investor invests £30,000 under SEIS – the investor receives a tax refund from HMRC of £15,000.00 for the tax year the money is invested.  The tax relief is higher than the 30% limit under EIS.
  • What happens when the SEIS shares are sold? – When the shares are sold there is further tax relief as profits are free of capital gains tax. So if the shares are sold for say £30,000.00 there is a tax saving of £6,000.00 compared with the capital gains tax bill for non-SEIS shares.
  • Qualification for SEIS – Not all companies or businesses can qualify for EIS as there are requirements around the company’s size and status.  The company must have been trading for less than 3 years, cannot be a subsidiary of another company (where that other company holds more than 50% of the shares in the company), cannot raise more than £5m in total over a 1 year period and the funds raised must be used for trades approved under the legislation.  Trades such as property and finance are prohibited for SEIS purposes. In cases of grey areas we can approach HMRC and seek their views.
  • Next steps
  • Once you receive HMRC approval we are able to help with processing the subscriptions for shares.   There are rules around the timing of investment and the issue of shares which we will guide you on.

    Let us take it from here

    Call us on 020 7438 1060 or complete the form and one of our team will be in touch.

    Catherine Gannon

    Catherine is an extremely experienced solicitor, having been qualified since 2000, and deals with all types of corporate and commercial matters and advice and also tax law.

    Catherine is well known for turning complex problems into solutions, priding herself on always finding a way. In her spare time she runs Gannons!