SEIS EIS FUNDING | StellarFD

FUNDING

Depending on the stage your business is at, its ambitions and structure, we can advise on the options available to you and utilise our extensive network to facilitate relevant introductions for both debt and equity finance.

Seed Enterprise Investment Scheme (SEIS)

If you have an early stage start-up you can boost your funding with the offer of 50% income tax relief for your investors under SEIS. This excellent incentive applies to the issue of shares for investment from business angels and private investors. Further, capital gains tax incentives mean that if the shares are held for three years, no capital gains tax will be payable if the shares are sold at a profit.

Enterprise Investment Scheme (EIS)

Similar to SEIS, the EIS tax relief provides attractive income tax, capital gains tax and inheritance tax relief for investors into qualifying trading companies. Many companies seek SEIS tax relief on investments up to £150,000 (the max permitted under SEIS) and then follow on with EIS investment as this has much higher investment limits but 30% income tax relief. The maximum a company can raise under EIS is £5m in a twelve month period.

There are a number of factors to consider when seeking to combine these reliefs and we can help companies and founders navigate the hurdles. We can help you secure advance assurance from HM Revenue & Customs that your company qualifies for investment under SEIS and EIS and assist with share structuring and claiming tax relief for your investors.

Does my company qualify for SEIS / EIS?

SEIS / EIS applies to the issue of shares in unquoted trading companies, that is one that is not listed on a recognised stock exchange. Private limited companies are permitted and an AIM listing is not a recognised stock exchange for these purposes so would qualify. Unfortunately there is no clear definition of “trading” – instead HMRC have a list of ‘excluded activities’ that help us determine the types of activities that do not qualify and we can help you navigate this area.

How can you help me?

This very much depends on your specific circumstances. However, if you feel your business may be relevant for SEIS or EIS funding, StellarFD can help you receive approval from HMRC for your these schemes. We carry out a full risk assessment to check whether there could be any issues with your application, following which we can provide advice on how to mitigate the relevant findings. Our service covers the whole process including:

A full risk assessment to identify potential issues that you may face such as connection issues, relevance of trade, timing of share issues etc.
Professional review of your business plan
Obtaining advance assurance
Completing all SEIS & EIS paperwork required by HMRC
Issuing the shares to investors and sending out share certificates
Preparing board minutes to document the issuance of the shares
Dealing with all queries from HMRC
Providing detailed guidance and advice on the transaction from start to finish

Following a free initial consultation where we understand your business and conduct our risk assessment in respect of SEIS and EIS, we will quote you a fixed fee for the above.

Separately, we can also assist in preparing business plans or plan financials for your application as well as identifying potential sources of funding.