If a company issues shares under EIS then it is no longer possible to go back and issue shares under SEIS. However, it is possible to apply for both the SEIS and EIS at the same time. In fact, there are many companies that choose to raise funding under the SEIS and EIS at the same time.

What happens to EIS shares on death?

EIS shares are treated like any other shares you buy in the stock market. This means when you die they form part of your estate and can be passed on to whomever you choose. IHT relief, however, could only be available if the shares have been held for at least two years.

What is SEIS or EIS?

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are UK government schemes designed to help smaller higher-risk trading companies raise finance, by offering a range of tax relief to investors who purchase new shares in those companies.

Can family invest in EIS?

My understanding is that while family members are not eligible to use the EIS to reap most of the benefits, they are still able to benefit from the loss mitigation aspect of it. For example, I would like to issue equity to my husband through the EIS.

How do I claim an EIS loss?

If you complete a self-assessment tax return, you can claim EIS losses against either income tax or capital gains tax by completing the SA108 form (the Self-Assessment form). If you don’t already complete this online, you can request a Self-Assement form from hmrc.gov.uk.

How does EIS and SEIS work?

Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) are investment schemes designed to encourage investment in small or medium sized companies. They do this by offering tax reliefs to individual investors who buy new shares in your company.

Who is eligible for EIS investment?

You can receive investment under EIS as long as it’s within 7 years of your company’s first commercial sale. If you have any subsidiaries (including former subsidiaries) or businesses you’ve acquired, the date of your first commercial sale is the earliest of the group.

How do I know if a company has EIS?

You can see if an investment is EIS or SEIS eligible on the individual campaign as it will have a small grey badge marked ‘EIS’ or ‘SEIS’. Every company raising funds marked as eligible has to show Seedrs evidence of having received Advance Assurance from HMRC before we’ll complete the investment round.

What companies are eligible for EIS?

Qualifying companies

  • Have gross assets of less than £15m, and no more than £16m immediately after the share issue.
  • Have fewer than 250 ‘full time equivalent’ employees.
  • Be unquoted or on AIM or NEX Growth, and have no arrangements in place to become quoted on a recognised stock exchange.

    Who is eligible for EIS?

    Every employee in the private sector who is a Malaysian citizen or permanent resident aged between 18 to 60 years old qualifies for EIS. You are not covered if you belong to any of these categories: domestic workers, self-employed, civil servants, and workers in local authorities and statutory bodies.

    How does an EIS scheme work?

    EIS is designed so that your company can raise money to help grow your business. It does this by offering tax reliefs to individual investors who buy new shares in your company. Your company must receive investment under a venture capital scheme within 7 years of its first commercial sale.

    Do you have to issue EIS before issuing Seis?

    SEIS shares should be issued prior to any EIS shares. If you issue SEIS and EIS shares on the same date, the SEIS shares will not qualify (note that if all shares are issued on the same day that it may be possible to claim EIS in respect of all the shares but HMRC will not accept an SEIS claim).

    How many shares of SEIS can you have?

    Remember to keep each EIS investor to below a 30% shareholding, i.e. 166 shares x 30% = no single SEIS / EIS investors cannot have 50 shares or more. The SEIS investors know all along that they will diluted as further shares are issued.

    What can a company do with a seis?

    They must be used solely to promote the growth and development of the company, such as hiring new employees, developing the product or marketing. A company can raise a maximum of £150,000 in SEIS funding, whilst a maximum of £12 million per company can be raised in EIS funding.

    What are the rules for an EIS investor?

    Investor rules for EIS 1. Investor rules: SEIS You don’t need to be a UK resident to claim SEIS, but you must have UK income tax liability against which to set the relief. The shares must be held for a period of at least three years from the date of issue for the relief to be retained.