SEIS

A UK government scheme offering significant income and capital gains tax reliefs to individual investors who invest in qualifying early-stage companies, designed to encourage angel investment into startups.

SEIS makes investing in early-stage startups far more attractive by allowing investors to reclaim 50% of their investment as income tax relief and eliminating capital gains tax on profitable exits. Founders with SEIS approval can raise capital more easily.

A founder gains SEIS advance assurance from HMRC and raises £100,000 from three angel investors. Each investor reclaims 50% of their investment in income tax relief immediately, reducing their effective risk significantly and making them far more willing to invest at the early, high-risk stage.