Fundraising
SEIS vs EIS: A Founder’s Guide
SEIS and EIS give your investors generous tax relief, and that relief often decides whether a round comes together. Here is what each scheme does, who qualifies, and the one step that makes your raise far easier to close.
If you are raising your first or second round in the UK, SEIS and EIS are two of the most powerful tools you have. They give your investors generous tax relief, which often makes the difference between a yes and a maybe.
Founders mix the two schemes up all the time. Here is a clear, founder-facing guide: what each one does, who qualifies, and the one step that makes your round noticeably easier to close.
The short version
- SEIS is for the earliest stage, with 50% investor relief and a £250,000 company limit. EIS is for the stage after, with 30% relief and much higher limits.
- A company can use SEIS first and EIS later, but never on the same shares.
- Advance assurance, HMRC confirming you look eligible before you raise, is the step that makes a round easier to close. Many angels expect it.
- Most mistakes are timing and paperwork: issuing shares too early, the wrong share terms, or missing the post-raise compliance that lets investors actually claim.
What SEIS and EIS are for
Both are government schemes that reward people for investing in early-stage UK companies. The investor gets income tax relief, and other reliefs on top, in return for backing higher-risk businesses. For you, that means a more attractive deal and a wider pool of investors willing to write a cheque.
SEIS is for the earliest stage. EIS is for the stage after. Many companies use SEIS first, then move to EIS as they grow.
SEIS vs EIS at a glance
| SEIS | EIS | |
|---|---|---|
| Income tax relief for the investor | 50% | 30% |
| Most a company can raise under the scheme | £250,000 | Up to £10m a year, £24m over its lifetime |
| Most an investor can put in per year | £200,000 | £1m (£2m for knowledge-intensive) |
| Company age | Under 3 years trading | Within 7 years of first commercial sale (longer for knowledge-intensive) |
| Size limits | Gross assets under £350k, under 25 employees | Gross assets under £15m, under 500 employees |
| Minimum hold for the investor | 3 years | 3 years |
Both schemes also carry capital gains advantages and loss relief for investors, which add to the appeal. Limits and detailed rules change over time, so treat the figures above as the headline picture and confirm the current position before you raise.
How to think about which one you use
It is less “SEIS or EIS” and more “where are you on the path”. It usually goes like this:
- Earliest stage: you use SEIS to bring in your first outside money, up to the £250,000 limit. The 50% relief is a strong pull for angels.
- Next stage: once you have used your SEIS allowance, or outgrown the size limits, you move to EIS for larger amounts.
You cannot claim SEIS and EIS on the same shares, but a company can use SEIS first and EIS later. Getting the order and timing right is part of planning a round well.
The step that makes your round easier: advance assurance
Advance assurance is HMRC confirming, before you raise, that your company looks like it will qualify for the scheme. It is not a guarantee, but it tells investors that the tax relief they are counting on is very likely to be there.
This matters more than founders expect. Many angels will not invest without it, because the tax relief is a core part of why the numbers work for them. Walking into investor conversations with advance assurance in hand removes a major objection before it is raised.
We handle SEIS and EIS advance assurance from £500, and we make sure the application gives HMRC what it needs the first time.
Raising soon?
Get advance assurance in place first
It is one of the highest-return things you can do before you start raising. We will get the application right the first time.
Book a 15-minute intro call →Common mistakes that cost founders the relief
- Issuing shares too early.Before advance assurance, or before the company qualifies. Timing errors can lose the relief entirely.
- Using the wrong share class or terms.The shares have to meet specific conditions to qualify.
- Tripping a size or age limit.Raise too late, or grow past a threshold, and a scheme can close to you.
- Missing the compliance steps after the raise.Investors only get their relief once you issue the right certificates, which depends on you filing correctly.
None of these are hard to avoid. They are easy to fall into when a round moves quickly and the paperwork is an afterthought.
Frequently asked questions
What is the difference between SEIS and EIS in one line?
SEIS is for the earliest stage with 50% investor relief and a £250,000 company limit. EIS is for the stage after, with 30% relief and much higher limits.
Can my company use both?
Yes, in sequence. Companies often raise under SEIS first, then EIS, but not on the same shares.
Do I need advance assurance?
It is not legally required, but in practice many investors expect it. It makes your round easier to close, so it is usually worth getting.
When do my investors actually get their tax relief?
After the raise, once the company issues the right compliance certificates. That depends on you filing the correct forms with HMRC, so the relief hinges on getting the post-raise admin right.
How long do investors have to hold the shares?
At least three years to keep the relief. Selling earlier can claw it back.
Check your likely eligibility with our SEIS/EIS checker, see how we support investor readiness, then book a 15-minute call and we will help you plan the round properly.
Planning a raise?
Plan the round properly
SEIS and EIS can make your round far easier to close, but only if the timing, the shares and the paperwork are right. Get advance assurance in place early and start from a position of strength.
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Last updated: June 2026. General guidance for UK limited companies, not specific advice. For support scoped to your business, book a free intro call.
