Short answer
SEIS is for very early-stage companies and gives 50% income tax relief on up to £200,000 a year. EIS is for slightly larger, more established companies and gives 30% relief on up to £1 million a year (£2 million for knowledge-intensive companies). Both carry high risk and both require shares to be held for at least three years.
Side-by-side comparison
| Feature | SEIS | EIS |
|---|---|---|
| Income tax relief rate | 50% | 30% |
| Investor annual limit | £200,000 | £1m (£2m with knowledge-intensive companies) |
| Carry-back | Yes, to previous year | Yes, to previous year |
| CGT on the shares | Exempt after 3 years if relief kept | Exempt after 3 years if relief kept |
| Gains on other assets | Reinvestment relief: 50% of the reinvested gain exempt | Deferral relief: gain postponed, no upper limit |
| Loss relief | Yes | Yes |
| Company can raise | £250,000 in total | £10m a year / £24m lifetime (higher for knowledge-intensive) |
| Company gross assets | Up to £350,000 | Up to £30m before / £35m after issue |
| Employees | Fewer than 25 | Fewer than 250 (500 knowledge-intensive) |
| Company age | Trading for less than 3 years | Generally within 7 years of first commercial sale (10 knowledge-intensive) |
EIS company limits shown apply to shares issued on or after 6 April 2026; earlier limits still apply to specified companies.
Risk profile
SEIS companies are at the very earliest stage, often before revenue, so the risk of failure is typically even higher than for EIS companies. The higher rate of relief reflects that risk; it does not offset it.
Using SEIS and EIS together
Many companies raise an initial SEIS round and then later EIS rounds. A company can raise EIS after SEIS, and since April 2023 it no longer needs to have spent 70% of its SEIS money first. SEIS and EIS shares can sometimes be issued on the same day if handled correctly, but the order and structure matter.
Which is right for an investor?
That depends on your tax position, risk tolerance and the opportunities available. Many investors hold both. Take professional advice on your circumstances.
Frequently asked questions
Is SEIS better than EIS?+
Neither is better in general. SEIS offers more relief per pound but on a much smaller amount, in companies that are usually at a riskier stage.
Can I invest in the same company under SEIS and EIS?+
Yes, if the company issues separate SEIS and EIS shares and you meet the conditions for each.
Sources
- GOV.UK — Venture capital schemes: tax relief for investors
- GOV.UK — Apply to use the Seed Enterprise Investment Scheme
- GOV.UK — Venture capital schemes: apply for the Enterprise Investment Scheme
- HMRC VCM1010 — Latest updates to the venture capital schemes
Tax rules can change. The information on this website is general information only and is not personal financial, investment, tax or legal advice. It does not take account of your individual circumstances. See our editorial policy.
Interested in EIS investing?
If you are a high-net-worth, sophisticated or professional investor, you can request investor information from us.
Capital at risk. EIS investments are high risk and illiquid. Tax reliefs depend on individual circumstances and qualifying conditions.