Mastering SEIS and EIS for UK Startups

§ QUICK ANSWER

What are SEIS and EIS and why do UK investors require them?

SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are HMRC tax relief schemes that give UK investors substantial relief on early-stage equity investments: 50% income tax relief on up to £200,000 invested per year under SEIS, 30% on up to £1 million per year under EIS, plus capital gains exemption on qualifying disposals after 3 years and loss relief if the investment fails. UK angel investors and seed funds require qualifying status before writing cheques because the schemes effectively halve their downside risk on each investment. For founders, SEIS Advance Assurance from HMRC before any fundraising round is now a baseline expectation.