EIS and SEIS serve the same essential purpose – to be a conduit for early-stage investment into high-growth-potential, smaller and younger UK companies, for which there is widely regarded to be a ‘finance gap’, meaning many promising businesses can struggle to obtain growth funding. The key difference between the two is that SEIS is explicitly targeted at start-ups and very early-stage companies, while EIS can be used by larger and more mature companies – though these are still relatively small and young in the context of the UK’s business and corporate landscape.
EIS funding criteria for companies
Fewer than 250 employees
Trading for less than seven years (or less than 10 years for ‘knowledge-intensive’ companies – typically those with high research and development costs/requirements)
Gross assets valued at no more than £15m
No previous investment from a Venture Capital Trust or EIS
Maximum lifetime amount that can be raised under EIS, SEIS and Venture Capital Trusts is £12m (or £20m for ‘knowledge intensive’ companies)
EIS funding criteria for companies
Fewer than 250 employees
Trading for less than two years
Gross assets valued at no more than £200,000
No previous investment from a Venture Capital Trust or EIS
Subject to a lifetime SEIS funding limit of £250,000
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EIS: The Basics – On Demand
Our industry leading educational programme covers the basics on what you need to know to recommend an EIS.
If you’ve never recommended an EIS before, we suggest you start with episode 1.
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EPISODE 1
The Modern World of EIS
An exploration into why EIS is more popular than ever, how early-stage companies are performing in the modern day climate and covering the basics of the tax reliefs.
45 mins
EPISODE 2
Trigger Points
Investigating the types of clients where EIS is most suitable.
45 mins
EPISODE 3
Due Diligence & Research
Understanding the due diligence required by advisers who are recommending EIS to clients.
45 mins
EIS: Advanced – On Demand
This is recommended for advisers who have completed the EIS—The Basics course, who already recommend EIS, or who are confident in tax-efficient investments.
Click the image below to sign up and access the video instantly, free of charge.
EPISODE 1
Journey of an Investee Company
Investigating the journey of companies as they grow to the point of exit, and understanding how returns are achieved through an EIS investment.
45 mins
EPISODE 2
More than just a tax tool
By analysing findings established in the Hardman & Co report, we discuss how you can add Venture Capital to a clients portfolio without impacting overall risk levels.
45 minutes
EPISODE 3
Financial Planning Considerations
Understanding the due diligence associated with recommending an EIS, and a closer look at tax planning scenarios.
45 minutes
IMPORTANT: The views expressed in these webinars are the views of the individual and not necessarily of Deepbridge Capital LLP. Figures quoted by the presenter and/or guest may be approximations. The content of these videos should not be construed as financial advice. This video is a real-time financial promotion and, as a result, has not been approved as a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000.
RISK WARNING: Any decision to invest should be made only on the basis of the relevant documentation for the investment available in the accompanying company profile. Investments in unquoted companies carry high risks. Capital invested will be at risk and you could lose all of your investment. No established market exists for the trading of shares in private companies, making it difficult to sell shares.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. The availability of tax reliefs depends on the Company invested in maintaining its qualifying status. Past performance is not a reliable indicator of future performance.
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