Comparison

SEIS vs EIS: which investment scheme for your raise?

By Buzz Accounting · Updated 2026-07-13 · Startups guide

SEIS and EIS are the tax reliefs that make UK angels write cheques. Most startups use SEIS first, then EIS — here's how they differ and how to sequence them.

The short answer

SEIS is for the earliest stage — up to £250,000 raised, company under 3 years old, giving investors 50% income tax relief. EIS comes after — up to £12m lifetime, giving 30% relief. Most startups raise SEIS first, then EIS, and getting the sequence right matters.

Side by side

SEIS vs EIS

	SEIS	EIS
Stage	Earliest	After SEIS
Max raised	£250,000 (lifetime)	£12m lifetime (£5m/yr)
Company age limit	Under 3 years	Generally under 7 years
Investor income tax relief	50%	30%
Gross assets limit	Under £350,000	Under £15m
Employees limit	Under 25	Under 250
Typical use	First angel round	Later, larger rounds

SEIS: the first cheque

The Seed Enterprise Investment Scheme is designed for brand-new companies. Investors get 50% income tax relief, no capital gains on the upside, and loss relief on the downside — which is why their real risk on a wipeout is roughly 27p in the pound. That maths is your pricing power. You can raise up to £250,000 under SEIS in total.

EIS: the bigger, later rounds

The Enterprise Investment Scheme picks up where SEIS leaves off: up to £12m over the company's life, with 30% investor relief. It suits later, larger raises once you've outgrown SEIS limits.

Sequence and paperwork matter

Raise SEIS before EIS — issuing EIS shares first can void SEIS relief for everyone. Both require full-risk ordinary shares, correct timing of money and share issues, and post-raise compliance statements (SEIS1/EIS1) before investors get their certificates. Get advance assurance from HMRC first — most angels won't invest without it. This is core accountant territory: see our post on SEIS/EIS for founders.

Our verdict

Raise SEIS first, EIS later. SEIS gives your earliest investors the strongest relief and is the standard first round; EIS funds the bigger rounds after. The value is in getting advance assurance and the paperwork exactly right — do that before you pitch, and we handle it for clients as standard.

Quick answers

About this comparison

What is the difference between SEIS and EIS?

SEIS is for the earliest stage — up to £250,000 raised, company under 3 years old, 50% investor income tax relief. EIS is for later, larger rounds — up to £12m lifetime with 30% relief. Most startups use SEIS first.

Can I use both SEIS and EIS?

Yes — most startups raise SEIS first then EIS. But the sequence matters: issuing EIS shares before SEIS can void SEIS relief, so get the order and paperwork right.

Do I need advance assurance?

Practically, yes. HMRC advance assurance pre-confirms your company qualifies, and most UK angels won't invest without it. Get it before you pitch.

How much relief do investors get?

SEIS gives investors 50% income tax relief on their investment; EIS gives 30%. Both also offer capital gains and loss reliefs that reduce investor risk further.

Free · straight to your inbox

Still not sure which is right for you?

Tell us your numbers and we'll model both. Plus practical startups tax tips by email — no jargon, unsubscribe any time.

No spam, no jargon. Unsubscribe any time.