SEIS & EIS Guide
The government pays you to back founders
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are HMRC-backed tax incentives that reduce the effective cost and risk of investing in UK startups. This guide explains how they work.
The two schemes
Both schemes are administered by HMRC. Investing in SEIS or EIS companies does not guarantee tax relief — each investment must individually qualify.
Seed Enterprise Investment Scheme
For the very earliest stage — pre-revenue or early traction
50% income tax relief
Deduct half your investment from your income tax bill in the year you invest.
CGT exemption on exit
Gains on SEIS shares held for 3+ years are completely exempt from Capital Gains Tax.
Loss relief
If the company fails, you can offset the net loss against income tax.
CGT reinvestment relief
Defer or eliminate capital gains from other investments by reinvesting into SEIS.
Enterprise Investment Scheme
For companies past the seed stage with growing traction
30% income tax relief
Claim 30% of your investment back from your income tax bill.
CGT deferral relief
Defer capital gains from other assets indefinitely by investing into EIS.
CGT exemption on disposal
Gains from EIS shares held 3+ years are CGT-free.
Loss relief
Offset losses against income tax or capital gains if the company fails.
IHT relief
EIS shares may qualify for Business Relief, removing them from your estate after 2 years.
Example: SEIS in practice
Based on a £10,000 investment. Tax calculations are illustrative — actual relief depends on your personal tax position.
This is an illustrative example only. Tax treatment depends on individual circumstances and is subject to change. Always consult a qualified tax adviser before making investment decisions.
Company eligibility rules
All companies raising on ProbablyBig under SEIS or EIS have received, or are applying for, HMRC Advance Assurance before their campaign goes live.
- •Company must be under 3 years old (trading)
- •Maximum raise under SEIS: £250k lifetime
- •Investor can invest up to £200k per tax year
- •Company must have fewer than 25 employees
- •Company must have gross assets under £350k
- •Advance Assurance from HMRC strongly recommended
- •Company must be under 7 years old (trading)
- •Maximum raise under EIS: £12M lifetime
- •Investor can invest up to £1M per tax year (£2M for KICs)
- •Company must have fewer than 250 employees
- •Company must have gross assets under £15M
- •HMRC Advance Assurance before raise goes live
SEIS and EIS tax reliefs are not guaranteed. They depend on the company maintaining its qualifying status throughout the minimum holding period. ProbablyBig does not provide tax advice. Please consult an FCA-authorised financial adviser or qualified tax professional.