SEIS vs EIS: which investment scheme for your raise?

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

The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) give investors income tax relief for buying shares in qualifying companies. Most startups use SEIS first and EIS after.

SEIS is for the earliest stage. A company whose trade is no more than 3 years old can raise up to £250,000, and investors get 50% income tax relief. EIS covers later rounds, up to £24m over the company's life, with 30% relief. Most startups raise under SEIS first, because a company that has already raised money under EIS cannot use SEIS.

SEIS vs EIS

	SEIS	EIS
Stage	Earliest	After SEIS
Max raised	£250,000 (lifetime)	£24m lifetime, £10m a year (£40m and £20m if knowledge-intensive)
Age limit	Trade no more than 3 years old	Within 7 years of first commercial sale (10 if knowledge-intensive)
Investor income tax relief	50%	30%
Gross assets limit	No more than £350,000	£30m before the issue, £35m after
Employees limit	Fewer than 25 full-time equivalent	Fewer than 250 full-time equivalent (500 if knowledge-intensive)
Typical use	First angel round	Later, larger rounds

How SEIS works

The Seed Enterprise Investment Scheme is for new companies. Investors get 50% income tax relief on the amount they invest. If they keep the shares for at least three years, any gain is free of Capital Gains Tax, and if the company fails they can claim loss relief. For an additional-rate taxpayer who loses the whole investment, each £1 invested costs 27.5p. The 50p of income tax relief leaves 50p at risk, and loss relief at 45% on that 50p gives back 22.5p. A company can raise up to £250,000 under SEIS in total.

How EIS works

The Enterprise Investment Scheme covers the larger rounds after SEIS. A company can raise up to £24m over its life, or £40m if it is a knowledge-intensive company (one that spends a large share of its costs on research and innovation), and investors get 30% income tax relief. It suits later, larger raises once the company is past the SEIS limits.

The order of share issues, and the paperwork

Raise under SEIS before EIS, because a company that has already raised money under EIS cannot use SEIS. Both schemes need ordinary shares that carry the full risk, paid for in full in cash when they are issued, and a compliance statement (form SEIS1 or EIS1) sent to HMRC after the round before investors can receive their certificates. Get advance assurance, HMRC's view that the company is likely to qualify, before you pitch, because most angels will not invest without it. Our post on SEIS and EIS for founders covers the process in more detail.

Our verdict

Raise under SEIS first and EIS after. SEIS gives your earliest investors the most relief and is the usual first round, and EIS covers the larger rounds that follow. Get advance assurance before you pitch, and get the paperwork right after each round.

We handle both schemes, from the advance assurance application and the order of the share issues to the compliance statement and your investors’ certificates. See how we handle SEIS and EIS.

Common questions

What is the difference between SEIS and EIS?

SEIS is for the earliest stage. A company whose trade is no more than 3 years old can raise up to £250,000, and investors get 50% income tax relief. EIS is for later, larger rounds, up to £24m over the company's life, and investors get 30% relief. Most startups use SEIS first.

Can I use both SEIS and EIS?

Yes. Most startups raise under SEIS first and EIS after. The order matters because a company that has already raised money under EIS cannot use SEIS.

Do I need advance assurance?

Advance assurance is HMRC's view, before you raise, that the company and the share issue look likely to qualify. Most UK angel investors will not invest without it, so apply before you pitch.

How much relief do investors get?

Investors get 50% income tax relief on SEIS investments and 30% on EIS investments. Both schemes also give relief from Capital Gains Tax on gains, and loss relief if the company fails.

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