•  SEIS vs EIS

SEIS vs EIS – Ultimate Guide to UK’s Tax-Efficient Startup Investment Schemes 2025

Introduction

Are you looking to invest in UK startups with minimal risk and maximum tax relief? The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are powerful tools that allow investors to enjoy major tax benefits while supporting the UK’s startup ecosystem.

At Zuizz, we guide investors and entrepreneurs through SEIS/EIS qualification and funding strategies. In this complete 2025 guide, we compare the two schemes and show you how to leverage them.

What Is SEIS (Seed Enterprise Investment Scheme)?

SEIS is designed for early-stage startups. It offers investors:

• 50% income tax relief (on up to £200,000/year)
• 100% Capital Gains Tax exemption (if shares held for 3+ years)
• CGT Loss Relief – claim losses if startup fails
• No Inheritance Tax if held for 2+ years

What Is EIS (Enterprise Investment Scheme)?

EIS supports more mature companies raising growth capital. Benefits include:

• 30% income tax relief (up to £1 million/year)
• CGT deferral relief
• 100% IHT exemption after 2 years
• Loss relief on failed investments

Key Differences: SEIS vs EIS

| Feature | SEIS | EIS | |---------------------|----------------------|--------------------------| | Max Investment | £200,000/year | £1,000,000/year | | Income Tax Relief | 50% | 30% | | Risk Level | High (early-stage) | Medium (scale-ups) | | IHT Exemption | Yes (after 2 years) | Yes (after 2 years) | | Ideal for | Angels, early investors | HNWIs, VC-backed startups |

Eligibility Requirements

To qualify:

• Companies must carry out a qualifying trade
• Must be unlisted and UK-based
• Investors must not be connected to the business
• Advance Assurance from HMRC is recommended

Why SEIS/EIS Is a Win-Win for Startups and Investors

Startups Get:

• Easier access to funding
• Long-term investors
• Competitive advantage

Investors Get:

• Immediate tax relief
• Long-term tax-free gains
• Downside protection with loss relief

How Zuizz Helps

At Zuizz, we support:

• Startup founders applying for Advance Assurance
• Investors performing due diligence
• Tax planning for high-net-worth individuals

Schedule a personalized EIS/SEIS consultation with Zuizz to maximize your investment tax reliefs and ensure HMRC compliance.