EIS vs SEIS at a Glance
A side-by-side comparison of the key tax benefits available under each scheme.
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Invest in high-growth UK businesses with tax efficiency
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are UK government initiatives designed to encourage private investment into early-stage and growing businesses.
By investing through these schemes, investors may benefit from significant tax reliefs, capital growth potential, and portfolio diversification.
For property investors in particular, SEIS and EIS investments can provide exposure to growth opportunities beyond traditional property assets, helping build a more balanced investment portfolio.
50%
SEIS
Income Tax Relief
30%
EIS
Income Tax Relief
0%
CGT on qualifying gains
3yr
Minimum holding period
The government provides generous incentives to encourage investment in qualifying companies.
Investors may benefit from valuable capital gains tax reliefs:
If an investment does not perform as expected, investors may be able to claim loss relief against their income or capital gains, helping to reduce overall investment risk.
With SEIS + Loss Relief
A 45% taxpayer risks as little as 13p per £1 invested
Many investors already involved in property choose SEIS and EIS investments to diversify beyond the property market.
While property can offer asset-backed stability and rental income, SEIS and EIS investments provide exposure to high-growth businesses supported by government tax incentives. Combining these asset classes can offer:
Diversification beyond property markets
Access to early-stage growth opportunities
Tax-efficient investment structures
Potential long-term capital growth
A side-by-side comparison of the key tax benefits available under each scheme.
An investor who invests £20,000 into a qualifying SEIS investment may be able to claim:
£10,000
Income tax relief (50%)
Reducing the effective cost of the investment to £10,000, while retaining full exposure to potential growth.
| Scenario | Investment | Outcome Before Tax Relief | Income Tax Relief (50%) | Additional Loss Relief (45%)* | Final Investor Position |
|---|---|---|---|---|---|
| Company 1 – Business Fails | £20,000 | £0 returned | £10,000 | £4,500 | Net loss: £5,500 |
| Company 2 – Break Even | £20,000 | £20,000 returned | £10,000 | N/A | Total value: £30,000 |
| Company 3 – 10× Return | £20,000 | £200,000 returned | £10,000 | N/A | Total value: £210,000 |
Total Invested
£60,000
Total Returned
£220,000
Total Tax Relief
£30,000
Net Investor Position
£250,000
The 50% income tax relief under SEIS significantly reduces the effective cost of investment.
Loss relief further reduces downside risk for higher-rate taxpayers.
Capital gains on successful SEIS investments can be completely tax-free if shares are held for at least three years.
Even with one total failure, strong performers can dramatically increase overall portfolio returns.
Investors who reinvest capital gains tax profits from the sale of a property have even less loss exposure.
High-net-worth individuals
Experienced property investors
Tax-efficient diversifiers
Early-stage growth seekers
Investors seeking to reduce their capital gains tax bill
If you are interested in learning more about SEIS and EIS investment opportunities, please register your interest and a member of our team will contact you with further information.