How do the schemes work?
The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Schemes (SEIS) are ways to help you raise funds to grow your business, fund a new business venture, or embark on R&D activity. An EIS is for a more established business, whereas a SEIS is for a start-up business.
The schemes offer generous tax relief to individual investors who invest in new shares in your company. Individuals will need to check if they are eligible. We generally recommend that the company apply for advance assurance before the investment is made to ensure HMRC Agree that the company meets the qualifying conditions for the reliefs.
There are rules that need to be followed once you receive the investment. The tax relief can be withheld or withdrawn if these rules are not followed for at least three years after the investment is made.
Does your company qualify?
As mentioned above, there are criteria that your business will need to meet to be able to use the scheme. This includes having a permanent UK establishment, not trading on a recognised stock exchange, not controlled by another company, and much more. There are also key SEIS and EIS forms that need submitting, and care must be taken as using the wrong form can impact the relief that can be claimed. We can assist with the SEIS/EIS process from start to finish, from checking that the company and the investors meet the conditions, preparing the Advance Assurance and completion of the various forms.
Have a question?
Speak to a team member today to see if you qualify and what the next steps would be.