Tax-Efficient Investment Innovation
The UK offers two powerful schemes to encourage investment in innovative businesses: the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS). These initiatives provide significant tax benefits while supporting innovation and growth of startups.
EIS targets slightly more established businesses and provides a range of tax incentives to encourage larger-scale investments.
Up to £1-2 million annually
Defer CGT on reinvestment
No UK CGT after 3+ years
Offset against income or CGT
Companies can raise up to £12 million in total through EIS funding, with a maximum of £5 million per year.
SEIS is designed to help very early-stage companies raise capital by offering generous tax reliefs to individual investors who purchase new shares in these businesses.
Up to £200,000 annual investment
No CGT after 3+ years
Offset against income tax or CGT
50% CGT reduction on reinvestment
100% after 2 years ownership
Eligible companies can raise up to £250,000 to support business development, including marketing, staffing, and R&D.
One of the most attractive aspects of EIS and SEIS for non-UK investors is the exemption from UK Capital Gains Tax on qualifying shares.
Regardless of residency, international investors pay no UK Capital Gains Tax on qualifying shares held for at least three years.
Upon sale, gains are returned in full, with no withholding or UK tax deducted at source.
Many jurisdictions benefit from bilateral tax treaties which can reduce or eliminate taxation on capital gains.
Gain exposure to the UK's thriving startup scene in technology, life sciences, fintech, and green innovation.
Whether you're a UK taxpayer or an international investor, EIS and SEIS open the door to early-stage, high-growth opportunities with uniquely generous tax benefits. These schemes are designed not only to support innovation but also to mitigate risk and enhance return potential — a win-win for entrepreneurs and investors alike.
Real-world examples demonstrating the power of EIS investments
• Shares must be held for at least 3 years to retain tax relief
• Loss relief is calculated on net loss after income tax relief
• Carry-back allows relief to be applied to prior year's tax bill
• Must be a UK taxpayer to benefit from income tax relief
Be part of our fast-growing community investing in the UK's next generation of innovation.
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