What tax reliefs can I get for investing in EIS & SEIS qualifying companies?

The government-backed Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) have been some of the most progressive and beneficial policies to come from government, fuelling growth and innovation by providing some serious tax benefits to investors.

Following the Autumn Statement 2023, both EIS and VCT reliefs were extended to 2035, giving investors and companies long-term certainty over the availability of these schemes.

Enterprise Investment Scheme (EIS)

The EIS offers a range of tax reliefs to investors who buy new shares in qualifying companies. The reliefs available include:

• Income Tax Relief – up to 30% of the amount invested (maximum of £1m invested per tax year, or £2m if at least £1m is invested in knowledge-intensive companies)
• Capital Gains Tax Deferral – gains on disposal of any asset can be deferred when the gain is reinvested into EIS-qualifying shares
• Capital Gains Tax Exemption – any gains on disposal of EIS shares are exempt from CGT, provided EIS Income Tax Relief was obtained and not withdrawn. With CGT rates on other assets now at 18% (basic rate) and 24% (higher rate) following the Autumn Budget 2024, this exemption is more valuable than ever
• Loss Relief – if EIS shares are disposed of at a loss, the loss (less Income Tax Relief obtained) can be offset against income or capital gains

Seed Enterprise Investment Scheme (SEIS)

The SEIS offers even more generous tax reliefs to investors in very early-stage companies. Following reforms that took effect from April 2023, both the investor and company limits were increased significantly:

• Income Tax Relief – up to 50% of the amount invested (maximum of £200,000 invested per tax year)
• Capital Gains Tax Exemption – gains on disposal of SEIS shares are exempt from CGT
• Capital Gains Tax Reinvestment Relief – 50% of the amount invested in SEIS shares can be set against capital gains made in the same year
• Loss Relief – similar to EIS, losses can be offset against income or capital gains

Updated SEIS company limits (from April 2023)

The April 2023 reforms also relaxed the qualifying conditions for companies seeking SEIS investment:

• Companies can now raise up to £250,000 under SEIS (increased from £150,000)
• The gross assets limit increased to £350,000 (from £200,000)
• The company age limit extended to 3 years (from 2 years)

Why these reliefs matter more in 2026/27

The reduction in the CGT annual exempt amount — down to just £3,000 for 2024/25 onwards (from £12,300 in 2022/23) — means that more gains are now exposed to CGT. Combined with the higher CGT rates introduced in October 2024, the CGT exemption available through EIS and SEIS has become considerably more valuable for investors.

How we can help

At Bearstone, we regularly advise both investors and companies on the EIS and SEIS schemes. Whether you're looking to raise investment or claim tax relief on an investment you've made, we can guide you through the process from start to finish.

Get in touch with us to find out more about how we can help.