The Seed Enterprise Investment Scheme (SEIS) was introduced by Chancellor George Osborne in 2011 and offers tax efficient benefits to individuals by encouraging investment in small and early stage start-up businesses in the UK. It was designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship.
Here are some of the important points:
- The business company must be a UK company and have a permanent establishment in the UK;
- The company must have traded for no more than two years;
- Investors can receive up to 50% tax relief in the tax year the investment is made.
- The company must have fewer than 25 employees. If the company is the parent company of a group, that figure applies to the whole group.
- Investors cannot control the company receiving their capital and have more than a 30% stake in the company in which they invest;
- SEIS investors can invest £100,000 in a single tax year which can be spread over a number of companies;
- Any one company can raise no more than £150,000 in total via SEIS investment;
- The company must have assets of less than £200,000;
- The company has to trade in an approved sector.
There is more detailed information here: http://www.seis.co.uk/scheme-highlights/