In the UK there are a number of schemes and initiatives to incentivise angel investors to invest their capital into startups. One of these schemes is the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). These government-backed initiatives offer attractive tax incentives to investors, encouraging them to provide vital funding to startups and small businesses. In this article, we will explore what SEIS\/EIS are, why they matter, and how investors can navigate the process of accessing these schemes.<\/p>\n\n\n\n
What are SEIS and EIS?<\/strong><\/p>\n\n\n\n Seed Enterprise Investment Scheme (SEIS):<\/strong><\/p>\n\n\n\n SEIS is a government scheme designed to promote investment in early-stage, high-risk startups. Launched in 2012, it provides tax incentives to individual investors who support qualifying companies. Investors can receive significant income tax relief, capital gains tax relief, and even loss relief if the venture doesn’t succeed. As of April 2023, investors receive a 50% tax break on up to \u00a3200,000 they invest through SEIS every tax year. <\/p>\n\n\n\n Enterprise Investment Scheme (EIS):<\/strong><\/p>\n\n\n\n Building on the success of SEIS, EIS extends its benefits to larger, more established companies. EIS offers tax advantages to investors who provide funding to businesses that may carry higher risks but have the potential for substantial growth. Like SEIS, it provides income tax relief, capital gains tax relief, and loss relief. Usually, investors receive a 30% tax break on up to \u00a31 million they invest through EIS every tax year.\u00a0<\/p>\n\n\n\n