SEIS/EIS readiness

SEIS and EIS can make early-stage investment far more attractive to UK investors. Both reliefs depend on detailed statutory and HMRC conditions, and both the company and the investor have to satisfy the relevant requirements. Get the sequence wrong and the relief can be lost.

What determines eligibility

• Company conditions. Age of the company, the trade, gross assets, employee numbers, previous investment, and how the money will be used.
• Share terms. Investor shares generally need careful structuring and should avoid problematic preferential or redemption rights.
• Investor connection. Relief can be affected where an investor is connected with the company.
• Process. Advance assurance is useful, but it is not the same as a guarantee of final relief.
• Coordination. Tax, legal and accounting advice need to line up before shares are issued.

A short checklist

• Check the qualifying trade and any excluded activities early.
• Review investor rights before agreeing heads of terms.
• Confirm the funds will be used for qualifying growth purposes.
• Keep board, shareholder and share-issue documents organised.
• Coordinate advance assurance, subscription documents and compliance statements.

Common traps

• Issuing shares before eligibility has been checked.
• Granting investor rights that prejudice the relief.
• Assuming advance assurance removes all risk.
• Changing the business or structure after investment without checking the impact.

We help founders structure investment documentation and work alongside tax advisers on SEIS/EIS readiness — so the relief survives the round.

This article is general information, not tax advice. SEIS/EIS eligibility turns on current HMRC rules; take specific tax and legal advice before issuing shares.