Seed Enterprise Investment Scheme (SEIS)
The highest income tax relief available in the UK at 50%. SEIS targets very early-stage companies with up to £200,000 per year investment, plus CGT reinvestment relief.
How It Works
You invest in qualifying early-stage companies (under 3 years old, fewer than 25 employees). You get 50% income tax relief — a £10,000 investment costs £5,000. Gains are CGT-free after 3 years. You can also exempt 50% of other capital gains reinvested into SEIS.
Tax Treatment
50% income tax relief — the highest rate available. Gains CGT-free after 3 years. 50% of capital gains reinvested in SEIS are exempt from CGT. Loss relief available.
Tax Advantages
- 50% income tax relief — the highest available in the UK
- Capital gains CGT-free after 3 years
- 50% CGT reinvestment relief on gains invested in SEIS
- Loss relief if the company fails
Who Is This Suitable For?
Very high earners and sophisticated investors who understand early-stage company risk. The 50% relief means you invest at half price.
Frequently Asked Questions
SEIS vs EIS?▾
SEIS is for earlier-stage companies and offers 50% relief (vs 30%). SEIS limit is £200k/year vs £1m for EIS. SEIS also offers CGT reinvestment relief.
Can I claim both in the same year?▾
Yes. You can invest £200,000 in SEIS and £1,000,000 in EIS in the same year. The reliefs are independent.
How risky is SEIS?▾
Very risky — early-stage startups have a high failure rate. The 50% relief means the company must fall over 50% before you lose money. Loss relief provides further protection.