The shares are eligible for both Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), a government-backed scheme designed to help smaller high-risk trading companies raise finance by offering a range of tax relief incentives to investors who purchase new shares in those companies. SEIS enables the first £150,000 of investment to qualify for 50% tax relief – enabling eligible investors to double the value of their investment at no additional cost to themselves. Under EIS, the remaining amount invested would attract 30% tax relief.
You can deduct income tax to the equivalent percentage of your total investment. For example, an investment of £1,000 under SEIS will have 50% deducted, making the net cost £500 and increasing the % returns significantly.
If you are able to claim tax relief on your investment (see below) the effective rate of return would therefore increase as follows:
- SEIS: 9.4%
- EIS: 6.9%
Please note that these returns are purely illustrative. They are not estimates or forecasts, and should be regarded in the context of the risk factors detailed in the share offer document.
Please also note that the availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor. We cannot guarantee your individual entitlement to EIS tax relief and recommend you seek professional advice.
Allocation of the first £150,000 of SEIS-eligible shares will be done on a strictly first-come-first-served basis, on receipt of a completed application form and payment.
You can read more about the full range of tax advantages available at the HMRC website.