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Information on EIS and SEIS

What are EIS and SEIS?

The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are government-sanctioned schemes which allow UK taxpayers who invest in certain qualifying businesses in the UK to offset a proportion of their investment against their income taxes, as well as benefit from other tax efficiencies.


EIS is designed for small and medium-sized businesses and comes with income tax relief of 30% of the amount invested. So if you invest £5,000 in an EIS-eligible investment offer, you get income tax relief of 30% of this (£1,500), i.e. your income tax bill would be £1,500 lower. To limit the cost to the Government, HMRC puts a restriction on the amount you can invest this way: there is a maximum annual investment allowance of £2m per tax year, although £1m of this can only be invested in “knowledge intensive” companies.

If you’re a company and you meet the requirements for EIS eligibility (more on that below), you can raise £5m per year and a total of £12m over the company’s life time and still be able to offer the EIS scheme to your investors.


SEIS is focused on very early-stage companies and offers significantly greater income tax relief of 50% of the amount invested. So if you invest £5,000, you get income tax relief of £2,500. For investors, the maximum annual investment limit is £100,000 per tax year. For companies, the lifetime cap is £150,000.

Both EIS and SEIS offer additional tax relief opportunities: losses on the investment can be used to reduce your taxable income, and any profits may be free of capital gains tax and inheritance tax. HMRC also puts some limitations though – for example to qualify for the reliefs, you generally must hold the shares for three years.

Can companies run EIS or SEIS investment offers on Fundy?

Yes, if your company is eligible for EIS or the SEIS and you are looking to raise funds, our platform is set up for that. We will ask you to seek pre-approval from HMRC as part of the investment offer preparation (this is known as ‘advanced assurance’) and share the confirmation from HMRC during the live investment offer. You can read more about this here:

What are the differences between EIS and SEIS for companies?

What is the maximum age of the business when the first round of EIS/SEIS funding is raised7 years2 years
Maximum gross assets before the shares are issued£15,000,000£200,000
Maximum number of employees25025
Annual limit on amount that can be raised£5,000,000£150,000
Lifetime limit on amount that can be raised by the company£12,000,000£150,000
When can an application be made to HMRC (to receive the compliance certificate)After the company has been trading for 4 monthsAfter 70% of the money raised has been employed in
Tax relief against amount invested30%50%
Is the company eligible when registered outside UK?NoNo
Applicable for secondary marketNoNo

How does a company qualify for EIS or SEIS?

The company is EIS eligible, for example if the company:

  1. is established in the UK
  2. isn’t trading on a recognised stock exchange at the time of the share issue and doesn’t plan to do so (NB the Fundy secondary market is not a recognised stock exchange)
  3. doesn’t control another company other than qualifying subsidiaries
  4. isn’t controlled by another company or doesn’t have more than 50% of its shares owned by another company
  5. and any qualifying subsidiaries must not have gross assets worth more than £15 million before any shares are issued and not more than £16 million immediately afterwards;
  6. and any qualifying subsidiaries must  have fewer than 250 full-time equivalent employees at the time the shares are issued;
  7. can’t raise more than £5 million in total in any 12-month period
  8. is within 7 years of your company’s first commercial sale.
  9. If the company didn’t receive investment within the first 7 years, or now wants to raise money for a different activity from a previous investment, the company will have to show:
    • the money is required to enter a completely new product market or a new geographic market
    • the money the company is seeking is at least 50% of the company’s average annual turnover for the last 5 years

Please be noted that this is not a full list of requirements. For additional information and conditions please contact HM Revenue & Customs

For SEIS purposes, the company needs to meet certain requirements. For example, the company is eligible, if:

  1. the company carries out a new qualifying trade,
  2. is established in the UK,
  3. isn’t trading on a recognised stock exchange at the time of the share issue, also known as an unquoted company,
  4. has no arrangements to become a quoted company or a subsidiary of one at the time of the share issue,
  5. has gross assets of no more than £200,000 at the time of the relevant share issue – this includes the group’s assets if your company has subsidiaries,
  6. doesn’t control another company unless that company is a qualifying subsidiary,
  7. isn’t a member of a partnership – any qualifying subsidiary can’t be either,
  8. isn’t controlled by another company, acting with or without other people – this applies from the date your company is incorporated
  9. has less than 25 full-time equivalent employees at the time the shares are issued. In case of any subsidiaries, this applies to the whole corporate group,
  10. has not received investment either through the Enterprise Investment Scheme (EIS) or from a venture capital trust.

Please note that this is not a full list of requirements. For additional information and conditions please contact HM Revenue & Customs

Additional information

For full and detailed information please visit HMRC website.

Legal note: The above is provided for informational purposes only and you should visit HMRC website for detailed requirements. You should also obtain independent tax advice before proceeding with fundraising or investment.

Risk Warning & Disclaimers The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available only to investors who have been approved by a Fundy group entity.

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment or transaction, including making a purchase of securities via the Marketplace. Fundy has taken steps to ensure that company and securities offering information is clear, fair and not misleading in accordance with its internal verification procedures. Fundy does not provide investment advice or any recommendation to invest. Any investment opportunity on this website should not be considered as an offer to the public and is not directed at or offered to anyone to whom it may not be so directed or offered, or located in a jurisdiction where it is unlawful to do so.

This page provides you with an overview of the services provided by different entities belonging to Fundy Group. In this page, we generally refer to the group as “Fundy”, “we”, “us” or “our”. It is important to note that funds are raised, investments made and trade orders placed through Fundy Pte. Ltd. (authorised and regulated by the UK Financial Conduct Authority under FRN 794918) or Fundy Markets Pte Ltd (licensed and regulated by the Monetary Authority of Singapore under Capital Markets Services (CMS) license CMS100863) and Fundy Markets AS (authorised and regulated by the Estonian Financial Supervision Authority under permit 4.1-1/212).

The Marketplace is operated as an organised market by Fundy Markets Pte Ltd in Singapore as a Recognised Market Operator (RMO) under the supervision of the Monetary Authority of Singapore.