Glossary · UK
What is SEIS (Seed Enterprise Investment Scheme)?
Generous tax relief for backing very early-stage startups — 50% Income Tax relief on up to £200,000/year.
Full Definition
The Seed Enterprise Investment Scheme (SEIS) targets very early-stage UK companies (under 3 years old, fewer than 25 employees, gross assets ≤£350,000). Investors get 50% Income Tax relief on up to £200,000 per tax year (raised from £100,000 in April 2023). Gains on SEIS shares are CGT-free after 3 years, and 50% of any matching gain reinvested from another asset can be exempted from CGT (SEIS reinvestment relief). Loss relief is available, and shares typically qualify for IHT Business Relief after 2 years. Combined reliefs can cover most downside risk, making SEIS one of the most generous tax incentives in the UK.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.