Does my company qualify for the scheme?
📘Overview
This guide explains how to determine whether your company meets the eligibility criteria for the Seed Enterprise Investment Scheme (SEIS) or the Enterprise Investment Scheme (EIS).
Both schemes are designed to encourage investment in early-stage companies by offering tax reliefs to investors. However, not every business qualifies, there are important restrictions and thresholds to check before applying.
- Which types of companies can qualify
- Excluded business activities
- Core eligibility criteria for both schemes
- Additional conditions specific to SEIS
🔍 Business Activities That Do Not Qualify
Certain trades are excluded from SEIS and EIS. Companies that mainly carry out these activities cannot qualify:
- Dealing in land, commodities, or financial instruments
- Financial services, such as banking, insurance, or lending
- Providing legal or accountancy services
- Property development
- Operating or managing hotels, nursing homes, or care homes
💡 Note:
If your company undertakes one of these activities but it represents 20% or less of overall business activities, you may still qualify. The excluded activity must remain minor relative to your main trade.
✅ Core Eligibility Criteria for SEIS and EIS
To qualify, your company must meet all of the following conditions:
Requirement |
Condition (current as 2025) |
| Company type | Unquoted limited company (AIM-listed companies are eligible) |
| Employees | Fewer than 25 full-time employees for SEIS eligibility |
| Assets | Gross assets of no more than £350,000 immediately before investment (for SEIS) |
| Ownership | Must not be controlled by another company |
| Subsidiaries | Any subsidiaries must themselves be qualifying companies |
| Trade | Must carry on a qualifying trade (excluding the activities listed above) |
| Residency | Must be UK resident or have a permanent establishment in the UK |
For EIS (growth-stage companies) many of these thresholds are higher.
📘 Additional Rules for SEIS Companies
SEIS has extra conditions reflecting its focus on very early-stage businesses:
- The company’s trade must be less than three years old at the time of share issue.
- The company’s gross assets must be no more than £350,000 immediately before the investment.
- The company must not have received investment from a Venture Capital Trust (VCT) or via EIS previously.
- The company must raise no more than £250,000 lifetime under SEIS.
💡 Key Points to Remember
- Excluded activities can disqualify your company unless they represent a small (≤20%) portion of business activity.
- Meeting all the listed eligibility conditions is essential – HM Revenue & Customs will assess each one carefully.
- The thresholds (e.g., asset limit, trade age) have increased in recent years, so check the latest guidance.
- Keep detailed records of your company’s activities, assets, trading history and investment funding when preparing an SEIS/EIS application.