What is the difference between SEIS and EIS?
📘 Overview
Both the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are designed to help early-stage companies raise investment by offering tax reliefs to investors.
However, they apply at different stages of a company’s growth and offer different levels of relief.
⚙️ Key Differences
| Feature | SEIS | EIS |
|---|---|---|
| Target Stage | Start-ups trading for 2 years or less | Companies trading for 7 years or less (or 10 years if Knowledge Intensive) |
| Income Tax Relief | 50% of the amount invested | 30% of the amount invested |
| Maximum Company Raise | £150,000 | £5 million per year, up to £12 million lifetime |
| Investor Limit | £100,000 per tax year | £1 million per tax year (or £2 million if £1m+ in KICs) |
💼 Typical Progression
Most companies:
- Begin by raising their first £150,000 under SEIS, and
- Move on to EIS once they’ve been trading for more than two years or need to raise larger sums.
In short:
👉 SEIS supports early-stage start-ups, offering higher tax relief to attract investors.
👉 EIS supports scaling companies, offering broader funding potential and ongoing investor incentives.