Seed Enterprise Investment Scheme Explained

The Seed Enterprise Investment Scheme (SEIS) was launched by the United Kingdom government on 6 April 2012 in order to encourage investors to finance startups by providing tax breaks for backing projects they may otherwise view as too risky.^[1] SEIS acts as a powerful incentive to encourage investors to invest as the tax relief can allow individual investors to reduce their effective income tax liability, for the year in which they make the investment, to zero.^[2]

Examples

Some of the funding for the establishment of the Nc’nean distillery in Scotland was from SEIS.^[3]

Notes and References

1. Web site: Venture capital schemes: apply to use the Seed Enterprise Investment Scheme . HM Revenue & Customs . 17 June 2018 . en . 16 June 2017.
2. Web site: Startup Investing – Importance of EIS and SEIS . Legal Foundations. 25 February 2024 . en . 25 February 2024.
3. Web site: Distilling a new way to run a whisky business . Financial Times . 10 October 2021.