SEIS & EIS Tax Planning for Investors & Entrepreneurs
Expert guidance on Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) tax planning. Maximize tax reliefs, optimize investment structures, and ensure compliance.
SEIS vs EIS Comparison
Understanding the key differences between SEIS and EIS schemes
| Feature | SEIS | EIS |
|---|---|---|
| Income Tax Relief | 50% of investment | 30% of investment |
| Annual Investment Limit | £200,000 per investor | £1,000,000 per investor |
| Company Age Limit | Under 2 years old | Under 7 years old |
| Gross Assets Limit | £350,000 before investment | £15 million before investment |
| CGT Exemption | After 3 years holding | After 3 years holding |
| Loss Relief | Available on disposal | Available on disposal |
Tax Benefits for Investors
Comprehensive tax reliefs available through SEIS and EIS investments
Income Tax Relief
Immediate tax relief on investment amount
Example: £100,000 investment = £50,000 SEIS relief or £30,000 EIS relief
Capital Gains Tax Exemption
No CGT on gains after 3-year holding period
Example: Complete exemption from CGT on qualifying disposals
CGT Deferral Relief
Defer CGT on other gains by investing in SEIS/EIS
Example: Defer CGT indefinitely until SEIS/EIS shares are disposed
Loss Relief
Tax relief on losses if investment fails
Example: Effective loss after all reliefs significantly reduced
Company Qualification Requirements
Key criteria companies must meet to qualify for SEIS and EIS
SEIS Requirements
EIS Requirements
Strategic Planning Approaches
Optimize your SEIS and EIS investment strategy for maximum tax efficiency
Investment Sequencing
Optimal timing and sequencing of SEIS and EIS investments
Portfolio Approach
Diversified investment strategy across multiple qualifying companies
CGT Deferral Planning
Using SEIS/EIS to defer capital gains tax on other disposals
Compliance & Administration
Key compliance requirements to maintain SEIS and EIS reliefs
Advance Assurance
HMRC confirmation that investment will qualify for relief
EIS/SEIS Certificates
Company must issue certificates to claim relief
Holding Period
Minimum 3-year holding period for full benefits
Annual Returns
Company compliance with ongoing requirements
Important SEIS/EIS Considerations
Risk Warning: SEIS and EIS investments carry significant risk. Companies may fail and investments may be lost entirely.
Professional Advice: Always seek professional advice before making SEIS or EIS investments to ensure they align with your circumstances and objectives.
Compliance Critical: Failure to meet ongoing compliance requirements can result in loss of tax reliefs and potential clawback of benefits claimed.
Optimize Your SEIS & EIS Strategy
Schedule a consultation to discuss your SEIS and EIS investment strategy and ensure optimal tax planning outcomes.
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Expert SEIS & EIS Tax Planning
Our SEIS and EIS tax planning services combine ICAEW professional standards with extensive experience in investment tax reliefs, ensuring optimal outcomes for investors and entrepreneurs.