EIS rules and benefits for investors explained
Invest in EIS-eligible companies to get generous tax relief. We set out the rules and benefits for investors.
SEIS and EIS fuels the UK startup scene, the vast majority of early-stage UK funding rounds have at least one SEIS or EIS investor. Being able to offer SEIS or EIS tax breaks to your investors dramatically increases your ability to attract angel investment.
Before your funding round that means applying for SEIS Advance Assurance, which provides investors with an assurance from HMRC that they will get their SEIS or EIS tax deductions later.
But, Advance Assurance is just a comfort letter from HMRC, before your investors can actually claim their tax breaks you’ll need to issue them with an SEIS3 or EIS3 certificate. Here’s how it works:
It’s a safe bet that starting a few weeks after your funding round, and definitely as the tax year end approaches, your investors are going to start hounding you for their SEIS3/EIS3 certificates, after all, those tax deductions were a key reason they invested in your company.
Creating these forms used to be hugely complex and time-consuming:
SeedLegals revolutionises the whole process, replacing all that form-filling and manual calculation of share numbers with a single integrated process. Simply fill in some questions, and SeedLegals will generate every required SEIS1/EIS1 form for you in an instant, just click to e-sign each, download as PDFs, and post to HMRC. Sign up to SeedLegals now.
Then, when you get your SEIS2/EIS2 authorisation number back, just come back here, paste it in, and we’ll instantly generate every SEIS3/EIS3 certificate. You can e-sign them all in one click, and then they’re instantly put into the Documents folder for each investor. That’s it!