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SEIS and EIS Tax Relief

Introduction to EIS and SEIS Investments

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are government-backed initiatives designed to encourage investment in small and early-stage companies. These schemes offer a range of tax reliefs for individual investors who purchase shares in qualifying companies. In this guide, we will provide an overview of the key features and benefits of EIS and SEIS investments, and explain how they can be used as part of a diversified investment strategy.

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What are EIS and SEIS investments?

Investors can access EIS and SEIS investments through a variety of channels, including venture capital trusts (VCTs), enterprise investment schemes (EISs), and seed enterprise investment schemes (SEISs). It’s important to conduct due diligence on any company before investing, to ensure it meets the qualifying criteria for the scheme and to assess the potential risks and rewards.

What are EIS and SEIS investments?

EIS and SEIS investments are designed to support small and early-stage companies by providing them with access to new sources of capital. In return for investing in these companies, individual investors can receive a range of tax reliefs, including income tax relief, capital gains tax relief, and inheritance tax relief.

What are EIS and SEIS investments?

Income tax relief: Investors can claim income tax relief of 30% on the amount invested, up to a maximum investment of £1,000,000 per tax year.

Capital gains tax relief: Investors can defer paying capital gains tax on any gains made from the sale of assets, as long as the proceeds are reinvested in EIS or SEIS qualifying companies within the same tax year.

Inheritance tax relief: EIS and SEIS investments are exempt from inheritance tax after two years of holding.

Risk: EIS and SEIS investments are considered high-risk, as they are typically made in early-stage companies that have not yet established a proven track record.

Why Do You Need a Professional Service for Managing SEIS and EIS

Professional services, such as those provided by Oxbridge Accountants Limited, can assist with the navigation of the complex regulations and requirements associated with EIS and SEIS investments. These services can include:

Advice on qualifying criteria: Professional services can ensure that the company in which you are considering investing meets the qualifying criteria for the EIS or SEIS scheme, which is necessary to claim the tax reliefs.

Advice on the investment process: Professional services can guide you through the investment process, including the documentation required and the timeline for claiming tax reliefs.

Assistance with due diligence: Professional services can assist with conducting due diligence on the company in which you are considering investing, to assess the potential risks and rewards.

Advice on tax planning: Professional services can provide tax planning advice to ensure that the EIS or SEIS investment fits with your overall financial plans and goals.

Support with claim of the tax reliefs: Professional services can assist with the claim of the tax reliefs, including completing and submitting the necessary documentation to HMRC.

By working with a professional services provider like Oxbridge Accountants Limited, you can ensure that your EIS or SEIS investment is structured in the most tax-efficient way possible, and that you are able to claim all of the tax reliefs to which you are entitled.

Why Choose Us

There are several reasons why Oxbridge Accountants Limited may be a good choice for assistance with EIS and SEIS investments:

Expertise: Oxbridge Accountants Limited has a team of experienced professionals who are knowledgeable about the regulations and requirements associated with EIS and SEIS investments. They can provide expert advice and guidance to ensure that your investment is structured in the most tax-efficient way possible.

Client-centric approach: Oxbridge Accountants Limited is dedicated to providing a client-centric approach, which means that they take the time to understand your unique financial situation and goals. They can provide customized advice and solutions to suit your specific needs.

Dedicated team: Oxbridge Accountants Limited have a dedicated team of professionals who specialize in EIS and SEIS investments, which means that you can expect a high level of expertise and attention throughout the process.

Proven track record: Oxbridge Accountants Limited has a proven track record of helping clients successfully navigate the EIS and SEIS investment process, which means that you can have confidence in their ability to deliver results.

Excellent reputation: Oxbridge Accountants Limited has an excellent reputation in the industry, which is a testament to the quality of their services and the satisfaction of their clients.

By choosing Oxbridge Accountants Limited, you can be confident that you are working with a team of professionals who have the expertise and experience to guide you through the EIS and SEIS investment process, and help you to make the most of the tax reliefs available.

Contact us

Contact us if you would like to know more about our services or to book your free telephone or video consultation.

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