SEIS and EIS
In June 2018 HMRC provided advance assurance that this share offer should meet the qualifying conditions of the seed enterprise investment scheme (SEIS) and the enterprise investment scheme (EIS).
SEIS and EIS are tax reliefs available to individual UK taxpayers who invest in qualifying early stage and growth companies established in the UK. The main benefits of SEIS and EIS for investors are the ability to offset 50% and 30% respectively of the investment amount against income tax liability for the current year and an exemption from capital gains tax on the disposal of shares after the three year qualifying period.
The first £150,000 of investment will be earmarked for SEIS relief, the remaining shares will be earmarked for EIS relief (both subject to final approval from HMRC). Shares will be allocated to SEIS on a strictly first come, first served basis.
The tax treatment of EIS and SEIS schemes depends on your individual circumstances and may be subject to change in future.