Legal Support for SEIS and EIS Investment Schemes

James Church
6 min readSep 8, 2022

Our friends at Dragon Argent, a specialist startup legal advisor, came up with everything you need to know about SEIS and EIS investor schemes. Tap onto this free legal support right here.

SEIS and EIS Do’s & Don’ts for Founders

The SEIS & EIS venture capital schemes are two of the four schemes managed by HMRC that enable early stage businesses that are potentially high risk to raise money from angel investors, crowdfunding platforms and venture capital trusts. They enable this by offering investors attractive capital gains tax breaks that significantly hedge the risk of their investments.

For any business looking to raise pre-seed to series A funding in the UK, offering SEIS & EIS relief to investors is a prerequisite for a successful raise. However, it is not always straightforward to navigate. Robot Mascot spoke to specialist startup legal advisors, Dragon Argent, who’ve seen numerous clients make mistakes over the years that can damage relationships with early investors and even invalidate their tax relief status. They shared their top tips below to help founders avoid some of these pitfalls!

SEIS & EIS Tax Relief Schemes Do’s…

Get Advance Assurance: Advance Assurance is available in respect of both SEIS and EIS. As neither relief can be applied for until the investment in question has been made, submitting the relevant information to HRMC ahead of this allows the company to get an indication of whether HMRC agree that the investment (and the company) will qualify under the terms of either regime. This means that if there is any objection by HMRC as to eligibility, this can be dealt with before any investment, which otherwise may not qualify.

Having said that, the assurance itself is based on the information provided, so the more specific and accurate an application for advance assurance is, the more reliable the indication…

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James Church

Author of the best-selling book Investable Entrepreneur and COO of leading pitch agency Robot Mascot: www.robotmascot.co.uk