--- title: "Investor Post-Investment Guide: SEIS Tax Relief | SFC Capital" description: Discover how to navigate the post-investment landscape for early-stage startups. From understanding your role and tracking performance to maximizing SEIS and EIS tax benefits, get all the insights you need to ensure long-term success. image: https://sfccapital.com/hubfs/Imported_Blog_Media/banner_1691681989.webp --- Disclaimer Please note, company introductions through SFC Capital Ltd ('SFC') are only suitable for ‘High Net Worth Individuals’, or ‘Sophisticated Investors’ as defined by the Financial Services & Markets Act 2000 (FSMA) who are familiar with and willing to accept the high risk associated with private investments. Any investor requesting to contact a company through SFC Capital does so at his/her own risk and is solely responsible for conducting any legal, accounting or due diligence review. There has been no investigation to the accuracy of any information or terms contained herein and we strongly suggest that you seek advice from a person authorised under the FSMA who specialises in advising on investments of this kind prior to commencement of any potential transaction. All content provided by SFC Capital is strictly for informational purpose only and does not constitute business, financial, investment, hedging, trading, legal, regulatory, tax or accounting advice or services. SFC Capital is an appointed representative of SFC Capital Partners Ltd which is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom (FRN 736284). This website is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. SFC Capital does not sell or offer to sell any securities and no information provided by SFC Capital is intended to constitute or to be interpreted as any such offer. SFC Capital simply provides an introductory service where potential partners of all sorts can meet. The SFC Angel Fund is managed by SFC Capital Partners Ltd (‘SFCCP’) which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, firm reference number 736284. Information on the Fund is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. Any decision by an investor to buy shares in a fund must be made solely on the basis of the information and terms contained within the Fund’s offering memorandum. Investment in the Fund is made entirely at the investor’s own risk and professional advice should be sought in case of doubt. SFC Capital Partners Ltd (‘SFC’) is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom, firm reference number 736284. This document is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. The SFC Angel Fund is managed by SFC Capital Partners Ltd (‘SFCCP’) which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, firm reference number 736284. Information on the Fund is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. Any decision by an investor to buy shares in a fund must be made solely on the basis of the information and terms contained within the Fund’s offering memorandum. Investment in the Fund is made entirely at the investor’s own risk and professional advice should be sought in case of doubt. The SFC Angel Fund is an SEIS/EIS fund which raises money for early-stage businesses by investing in SEIS and EIS eligible ventures with the aim of returning a profit for investors in the fund. Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution. Investment in SEIS/EIS funds should be considered as part of a diversified portfolio. The availability of tax relief depends on individual circumstances and may change in the future. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. There is no assurance that the investment objectives of any investment product will be achieved or that the strategies and methods described herein will be successful. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up. Investors may not get back the full amount invested. No warranties or representations of any kind are expressed or implied on this website. I Accept The Terms ## FCA Mandatory Risk Warning & Risk Summary > ## Risk Warning > > **Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong.** ## Risk Summary **Estimated reading time: 2 min** Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.   What are the key risks? 1. You could lose all the money you invest. Investments made by the SFC Angel Fund SEIS (the “Fund”) will be in shares in early-stage businesses. Investors in these shares often lose 100% of the money they invested, as many early-stage businesses fail. 2. You are unlikely to be protected if something goes wrong Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here: [https://www.fscs.org.uk/check/investment-protection-checker/](https://sfccapital.com/fca-mandatory-risk-warning-and-risk-summary/%20https://www.fscs.org.uk/check/investment-protection-checker/)    Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here: [https://www.financial-ombudsman.org.uk/consumers](https://www.financial-ombudsman.org.uk/consumers) 3. You won’t get your money back quickly Even if the businesses the Fund invests your money in are successful, it may take several years to get your money back. The most likely way to get your money back is if the businesses invested in by the Fund are bought by another business or list their shares on an exchange such as the London Stock Exchange. These events are not common. 4. Don’t put all your eggs in one basket Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.  A good rule of thumb is not to invest more than 10% of your money in high-risk investments.  [https://www.fca.org.uk/investsmart/5-questions-ask-you-invest](https://www.fca.org.uk/investsmart/5-questions-ask-you-invest) 5. The value of your investment can be reduced The percentage of each investee company that the Fund owns will decrease if the business issues more shares. This could mean that the value of your investment in each investee company reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.  These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment. 6. S/EIS tax reliefs are not guaranteed Whilst it is the Fund's intention to invest mostly in companies qualifying under SEIS legislation, SFC cannot guarantee that all investments will qualify for S/EIS relief (or IHT relief) or, indeed, if they do initially, that they will continue to do so throughout the life of the investment. The tax advantages of investing through the Fund are therefore not guaranteed.  If you are interested in learning more about how to protect yourself, visit the FCA’s website here: [https://www.fca.org.uk/investsmart](https://www.fca.org.uk/investsmart)  Close Don’t invest unless you’re prepared to lose all the money you invest. This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more. [![SFC Logo + Title x web](https://sfccapital.com/hs-fs/hubfs/SFC%20Logo%20+%20Title%20x%20web.png?width=2000&name=SFC%20Logo%20+%20Title%20x%20web.png)](https://sfccapital.com) - [Startups](https://sfccapital.com/raise) - Investors - [SEIS Fund](https://sfccapital.com/seis-funds) - [EIS Fund](https://sfccapital.com/eis-funds) - [SEIS Explained](https://sfccapital.com/seis-explained) - [EIS Explained](https://sfccapital.com/eis-explained) - [Angel House](https://sfccapital.com/angel-house) - [Advisors](https://sfccapital.com/advisors) - [Portfolio](https://portal.sfccapital.com/portfolio) - [About Us](https://sfccapital.com/about-us) - [Blog](https://sfccapital.com/blog) - [Login](https://portal.sfccapital.com/login) # Investor Post-Investment Guide: SEIS Tax Relief [Niklas Föltz, Marketing & Communications Manager](https://sfccapital.com/blog/author/niklas-foeltz) Joining in 2022, Niklas brings international marketing experience to SFC Capital, focusing on marketing strategy, content, PR, and events. - 10 Aug 2023 [Investors](https://sfccapital.com/blog/tag/investors) ##### Share on - - - #### Navigating Post-Investment: Strategies, Tax Benefits, and Monitoring Performance Investing in early-stage startups can be rewarding when investing through the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). However, there are some housekeeping rules for after you invest to ensure long-term success and maximize the tax benefits of the [SEIS Tax Relief](https://sfccapital.com/seis-explained) and [EIS Tax Relief](https://sfccapital.com/eis-explained). ##### What is Your Role? There are different paths through which you can [invest into early-stage startups](https://sfccapital.com/seis-funds).  1. **Direct Investment**: Also known as angel investing, this is when you invest your money directly into the startup. In this approach, your name may appear on the company's list of shareholders, and you might play roles such as board member or mentor. 2. **Fund Investment**: Here, you invest in a portfolio consisting of multiple early-stage companies. The primary advantages include diversification across various industries and having a professional fund manager handle due diligence, board responsibilities, monitoring the company's financial health, and developing an exit strategy. For this guide, we will assume the latter, so a portfolio approach to investing. ![Portfolio Approach](https://sfccapital.com/hs-fs/hubfs/Imported_Blog_Media/Picture%202_1691682227.png?width=523&height=419&name=Picture%202_1691682227.png) ##### Claiming SEIS Tax Relief Once you have made your investment into the fund, and the fund has been deployed, you can now claim your SEIS tax relief. If you invest through a fund, the fund manager will take on most of the tasks. For instance, all companies will be pre-vetted against their SEIS eligibility. Also, after an investment has been made and approved by HMRC, the fund manager will provide the SEIS3 form, which should then be stored away safely.  Steps to claim SEIS tax relief: 1. Safely store the SEIS3 certificates 2. Complete the self-assessment tax return 3. Provide evidence of the investment 4. Submit your tax return on time To claim the tax reliefs, you will need to complete the self-assessment tax return. Usually, this can be found under 'Other tax reliefs' on page Ai 2. Then, enter the specific investment details under 'Any other information' in box 19, page TR 7. The details include the following: - Unique Investment Reference (UIR) - Investee company name - Investment amount - Date of issue of the shares - HMRC may ask for the SEIS3 forms Additional tips: - Carry back option: If you've missed out in the previous year, you can backdate some or all of your SEIS investment to the preceding tax year. - For any questions, you can get in touch with [HM Revenue & Customs](https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment) ##### Staying up to date with performance It's crucial to set up a system to track the performance of your investments. Some funds offer portals with an easy overview of your investments, insights into valuations and recent company reports. However, it's essential to remember that early-stage startups might take time before showing significant returns, as startups oftentimes follow the 'hockey stick' curve of growth. With low revenues at the beginning, startups invest heavily into product development and set themselves up commercially before seeing returns further down the line. Hence, patience is key. ![Hockey Stick Curve](https://sfccapital.com/hs-fs/hubfs/Imported_Blog_Media/Picture%201_1691682237.png?width=485&height=387&name=Picture%201_1691682237.png) ##### Conclusion When you're investing into a portfolio, usually the fund will take over many of the obligations startup investors would usually have. Still, it is important to follow some simple housekeeping rules to be able to realise the attractive tax benefits that await you when investing through SEIS and EIS. It's important to manage expectations because early-stage startups might only realise returns some years into the future. However, you need to set yourself up to be able to track the companies' performance if not provided by your fund manager. To claim your SEIS tax relief, you need to organise your documents, and keep track of your investments. You can claim the relief through the self-assessment tax return and can also claim backwards. We at SFC Capital have developed our own portfolio management software which gives investors full control over their investments and documents. If you are interested in investing through SEIS, [register here as an investor](https://sfccapital.com/register/investor). *Capital at risk. For professional investors only.* --- ##### FAQ **How frequently should I monitor the performance of my investments?** It's advisable to monitor your investments regularly, but the exact frequency depends on your personal preference and the nature of the investment. For early-stage startups, quarterly reviews can provide a good balance between staying informed and not reacting hastily to short-term market fluctuations. However, if the fund or startup provides monthly updates, you might consider a monthly review. **What are the SEIS limits for HMRC?** Under the SEIS, individual investors can invest up to £200,000 in a single tax year, which can be spread over a number of companies. On this investment, they can receive up to 50% tax relief. Additionally, there are restrictions on the company's side as well. A company can raise a maximum of £250,000 under the SEIS scheme throughout its lifetime. **What happens if I don't receive an SEIS3 certificate after my investment?** The SEIS3 certificate is essential for claiming tax reliefs. If you haven't received it, contact the company you've invested in or the fund manager overseeing the investment. They are responsible for obtaining the SEIS3 form from HMRC and providing it to investors. There could be delays, but it's important to ensure it hasn't been overlooked. **What happens if an SEIS company goes bust?** If an SEIS company goes bust, the investor will likely lose their investment. However, they may be able to claim loss relief against their income tax or capital gains tax liability. They can also carry back losses to previous tax years and reinvest in another SEIS company. **How do fund managers select startups for their portfolios?** Fund managers use a combination of methods to select startups. This includes market research, due diligence on business models and financial health, evaluations of the founding team, and assessments of the product or service's potential. They also consider the startup's fit within the broader portfolio, ensuring diversification to mitigate risk. ##### Sources [HM Revenue & Customs (2023). HS393 Seed Enterprise Investment Scheme — Income Tax and Capital Gains Tax reliefs (2022).](https://www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2022) [HM Revenue & Customs (2023). Tax relief for investors using venture capital schemes.](https://sfccapital.com/blog/Tax%20relief%20for%20investors%20using%20venture%20capital%20schemes) #### Want to invest in a portfolio of SEIS and EIS companies? [Check out our Funds](https://sfccapital.com/seis-eis-funds) ## Related Articles 11 Apr 2024 [Startups](https://sfccapital.com/blog/tag/startups) ##### [What to do after you've secured investment](https://sfccapital.com/blog/what-to-do-after-you-secure-investment) Fundraising was just the start, now the hard work begins – make sure you're ready! Congratulations, ... [Read More](https://sfccapital.com/blog/what-to-do-after-you-secure-investment) 30 Sep 2024 [Startups](https://sfccapital.com/blog/tag/startups) ##### [What Is An Investor Memorandum?](https://sfccapital.com/blog/investor-memorandum) Raising funds for your company can be a daunting, long and hard process, especially from seed stage ... [Read More](https://sfccapital.com/blog/investor-memorandum) 15 Jan 2026 [Investors](https://sfccapital.com/blog/tag/investors) ##### [Pensions and Inheritance Tax from April 2027: Why More Investors Are Considering SEIS](https://sfccapital.com/blog/pensions-and-inheritance-tax-from-april-2027) The government plans to bring most unused pension funds and pension death benefits into the scope of... [Read More](https://sfccapital.com/blog/pensions-and-inheritance-tax-from-april-2027) [![SFC Logo + Title x web (white)](https://sfccapital.com/hs-fs/hubfs/SFC%20Logo%20+%20Title%20x%20web%20(white).png?width=2000&height=318&name=SFC%20Logo%20+%20Title%20x%20web%20(white).png)](https://sfccapital.com) - [Startups](https://sfccapital.com/raise) - [About Us](https://sfccapital.com/about-us) - [Blog](https://sfccapital.com/blog) - [Terms of Use](https://sfccapital.com/terms) - [Press](https://sfccapital.com/press) - [EIS Fund](https://sfccapital.com/eis-funds) - [SEIS Fund](https://sfccapital.com/seis-funds) - [SEIS Explained](https://sfccapital.com/seis-explained) - [EIS Explained](https://sfccapital.com/eis-explained) - [Advisors](https://sfccapital.com/advisors) - [Anti-Slavery Policy](https://sfccapital.com/anti-slavery-policy-statement) - [Privacy Policy](https://sfccapital.com/privacy) - [ESG Statement](https://sfccapital.com/esg-statement) - [Complaints Policy](https://sfccapital.com/complaints-procedure) - [FAQ's](https://sfccapital.com/faq) - - - [Login](https://portal.sfccapital.com/login) #### Partners: [![mayor of london logo](https://sfccapital.com/hs-fs/hubfs/mayor%20of%20london.png?width=564&height=247&name=mayor%20of%20london.png)](https://www.london.gov.uk/programmes-strategies/shaping-local-places/funding-opportunities/london-co-investment-fund-lcif) [![london coinvestment fund logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/london%20coinvestment%20fund.png?width=564&height=247&name=london%20coinvestment%20fund.png)](https://www.london.gov.uk/programmes-strategies/shaping-local-places/funding-opportunities/london-co-investment-fund-lcif) [![smb logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/smb.png?width=564&height=247&name=smb.png)](https://www.smb.london/) [![Young talent logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/Young%20talent%20(1).png?width=600&height=296&name=Young%20talent%20(1).png)](https://yourtalentsolutions.co.uk/) [![eisa logo](https://sfccapital.com/hs-fs/hubfs/eisa.png?width=564&height=247&name=eisa.png)](https://www.eisa.org.uk/) [![Bennet brooks logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/Bennet%20brooks.png?width=564&height=272&name=Bennet%20brooks.png)](http://www.bennettbrooks.co.uk/) [![SFC Web - HP - Partner Logos - British Business Bank (BBB BBI) (white; 104 x 50px)](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logos%20-%20British%20Business%20Bank%20(BBB%20BBI)%20(white%3B%20104%20x%2050px).webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logos%20-%20British%20Business%20Bank%20(BBB%20BBI)%20(white%3B%20104%20x%2050px).webp)](https://www.bbinv.co.uk/) [![ukri - innovate uk logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/ukri%20-%20innovate%20uk.png?width=564&height=248&name=ukri%20-%20innovate%20uk.png)](https://www.ukri.org/councils/innovate-uk/) [![investing in women code logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/investing%20in%20women%20code.png?width=564&height=248&name=investing%20in%20women%20code.png)](https://www.gov.uk/government/publications/investing-in-women-code) [![uk business angels logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/uk%20business%20angels.png?width=564&height=247&name=uk%20business%20angels.png)](https://www.ukbaa.org.uk/) [![SFC Web - HP - Partner Logo (white; 104 x 50px) - Home Grown](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Home%20Grown.webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Home%20Grown.webp)](https://homegrownclub.co.uk/) [![SFC Web - HP - Partner Logo (white; 104 x 50px) - Markel](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Markel.webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Markel.webp)](http://www.markelinternational.com/) DISCLAIMER: SFC Capital Ltd (SFC) is an appointed representative of SFC Capital Partners Ltd which is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom (FRN 736284). This website is intended for  professional investors, high net worth investor or certified sophisticated investors only for the purposes of the FCA's Conduct of Business Sourcebook.; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell any securities. Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution. Investment in SEIS/EIS eligible companies should be considered as part of a diversified portfolio. The availability of tax relief depends on individual circumstances and may change in the future. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. The investment products cited herein may place capital at risk and therefore investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up. Investors may not get back the full amount invested. Companies’ pitches for investment are not offers to the public and investments can only be made by members of SFC Capital. SFC Capital takes no responsibility for this information or for any recommendations or opinions made by the companies. Neither SFC Capital nor any of its employees provide any financial or tax advice in relation to the investments and investors are recommended to seek independent financial and tax advice before committing. This website is not directed at or intended for publication or distribution to any person (natural or legal) in any jurisdiction where doing so would result in contravention of any applicable laws or regulations. No warranties or representations of any kind are expressed or implied herein. This material is confidential and is the property of SFC Capital. © SFC Capital - 2026 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Niklas Föltz, Marketing & Communications Manager", "url" : "https://sfccapital.com/blog/author/niklas-foeltz" }, "dateModified" : "2024-09-30T08:36:58.024Z", "datePublished" : "2023-08-10T05:38:00.000Z", "headline" : "Investor Post-Investment Guide: SEIS Tax Relief | SFC Capital", "image" : [ "https://sfccapital.com/hubfs/Imported_Blog_Media/banner_1691681989.webp" ], "mainEntityOfPage" : { "@id" : "https://sfccapital.com/blog/investor-post-investment-guide", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" }, "name" : "SFC Capital" } } ```