SEIS/EIS Investing

Startup having a meeting
The (Seed) Enterprise Investment Schemes are government-backed, tax-efficient schemes designed to incentivise investments into early-stage companies. Both EIS and SEIS offer generous tax benefits to individuals investing in British startups, with the latter being intended to recognise the difficulties that very early-stage companies face in attracting investment, and thus offering tax relief at a higher rate than EIS. Tax benefits are subject to individual circumstances. Subject to changes.
Startup having a meeting

01 SEIS and EIS Benefits

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Income Tax relief

50% under SEIS, 30% under EIS. Possibility to carry-back the relief to the previous tax year.

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No capital gains tax

You will pay no capital gains tax on any profits you make from an EIS or SEIS investment.

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Loss relief

If you make a loss on your investment, you can offset that loss against income tax.

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No inheritance tax

There is no inheritance tax to pay on shares bought through EIS and SEIS.

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Capital gains reinvestment relief

With SEIS, you can reclaim up to 50% of the tax paid on a capital gain if you reinvest it under the scheme.

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Business Investment Relief

UK residents and non-UK domiciliaries investing via SEIS/EIS may be able to bring in non-UK capital without a UK tax charge.

02 How to invest and claim tax relief

1

Join SFC Investor Network

The first step is to submit your registration form that includes your investor self-certification and contact details. Once received, one of our team members will review it and will reach out to respond to any questions.
2

SEIS and EIS Fund

Log into your SFC Online Account and review open Fund Investment Opportunities. ‘Register Interest’ button will allow you to express your interest and be contacted by our team if you have questions.
3

Fund Application Form

When you are ready, fill in our online form to start the investment process.
4

Portfolio Investment

Our team of experienced investment professionals will select and screen the best available opportunities that qualify for SEIS and EIS tax break, we will negotiate the terms and produce relevant documentation. Each portfolio will account between 15 and 30 companies.
5

SEIS/EIS tax certificates

A tax certificate (SEIS3 and EIS3) will be provided for each underlying investment made by the fund on your behalf. This means that if you have 20 companies in your SEIS portfolio, you will receive 20 SEIS3 certificates. We work with investee companies to apply to HMRC for these as soon as possible after closing an investment.
6

Keeping track of certificates

Once available, the SEIS/EIS certificates will appear on the SFC Online Portal. It typically takes 2-3 months from the date of the last investment in a portfolio company to receive the full pack of certificates. On average, the certificates are provided 6 months after the date of the subscription (subject to HMRC’s turnaround times).
7

Investment Summary

An Investment Summary table will be generated containing all the investments made in a single tax year – and including all the details needed to make your tax relief claim when you complete your tax return.
8

Tax breaks claim

Once certificates are available, you will be able to claim tax relief with HMRC. You have an option to carry tax relief back to the previous tax year. We advise to use professional assistance to make sure this process is performed correctly. Tax benefits are subject to individual circumstances. Subject to changes.