Is my company eligible for SEIS or EIS? SEIS/EIS criteria explained

SEIS and EIS are powerful UK government schemes that offer tax relief to investors in early-stage companies. But is your startup eligible? In this guide, we break down the SEIS/EIS rules, including qualifying trades, excluded activities and the key eligibility criteria.

Which trades are excluded from SEIS/EIS?

Not every type of business qualifies for SEIS or EIS. HMRC maintains a list of excluded activities – trades that are considered ineligible for investment under these schemes.

If your company’s trade includes any of these activities, and they make up a ‘substantial’ part (more than 20%) of your business operations, you won’t be eligible for SEIS or EIS tax relief.

Here are some of the key excluded activities under SEIS and EIS:

• dealing in land, commodities or shares
• banking, insurance or money-lending
• providing legal or accountancy services
• property development
• operating hotels, nursing homes or residential care homes
• managing investments or financial assets
• leasing or letting assets on hire
• generating and exporting electricity

⚠️ Important: Even if your company is involved in one of these trades, you can still qualify if that activity is only a minor part of your business (less than 20% of trade activity).

Because the rules can be complex, and many businesses operate in a grey area, HMRC treats each case individually. If you’re not sure how these exclusions apply to your company, it’s worth seeking guidance or applying for Advance Assurance to get clarity.

SEIS and EIS eligibility checklist

To qualify for SEIS or EIS, your company must meet a specific set of criteria defined by HMRC. These rules help determine whether a business is early-stage and high-risk enough to justify tax relief for investors.

Here’s a quick overview of the main SEIS and EIS eligibility criteria in 2025:

The gross assets test

To raise funding under SEIS, your company must have no more than £350,000 in gross assets immediately before the investment (this limit was previously £200,000 before April 2023).

For EIS, the threshold is £15 million pre-money.

The number of employees test

Your business must have 25 or fewer employees to qualify for SEIS, or 250 or fewer to qualify for EIS. These figures refer to full-time equivalents (FTEs).

The trading time test

To be eligible for SEIS, your company must have been trading for less than 3 years (previously 2 years). For EIS, the standard limit is less than 7 years, with certain extensions for knowledge-intensive companies.

⚠️ Note: HMRC uses the date your company started trading – not the date of incorporation. This is usually based on when your company first generated revenue or incurred expenses, not just when it was registered with Companies House.

UK permanent establishment test

Your company must have a permanent establishment in the UK. This doesn’t necessarily mean being incorporated in the UK – a foreign company might still qualify if it has a meaningful UK presence, such as an office or employees working from the UK.

The partnership test

Your company must not be part of a partnership with another business entity. If it is, HMRC might view your company as ineligible for tax relief under SEIS/EIS.

Still unsure if your company is eligible for SEIS or EIS?

Book a call with a SEIS/EIS specialist or get started with Advance Assurance today.