SEIS and EIS offer a range of tax benefits to eligible UK investors. SEIS provides up to 50% income tax relief (on £200,000 per year) and 50% CGT re-investment relief. EIS offers up to 30% income tax relief (typically up to £1m, or £2m for knowledge-intensive companies) and CGT deferral on gains reinvested. Both schemes also offer CGT-free growth after three years, loss relief, and potential inheritance tax relief. Tax treatment depends on your circumstances and may change, so independent advice is recommended.
Investment Schemes
What are SEIS and EIS schemes?
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are UK government initiatives designed to encourage investment in early-stage and high-risk companies. They offer tax relief to individual investors who purchase new shares in qualifying companies. SEIS focuses on very early-stage companies, offering more generous tax reliefs, while EIS is geared towards slightly larger and less risky enterprises.
What are the tax relief benefits?
Can I carry back the tax relief?
Yes, you can carry back SEIS and EIS tax relief to the previous tax year, subject to certain limits and conditions.
How do I receive my SEIS and EIS tax relief certificates?
Once an investment has been made, SEIS and EIS tax relief certificates are typically issued within 4 months. These will be sent to you either by post or electronically, based on your preference.
How will I know when I’ve received all my SEIS and EIS tax relief certificates?
You'll receive a notification from us confirming the issuance of all tax relief certificates related to your investment.
What happens if companies enter into liquidation? How do I obtain evidence for loss relief?
In the unfortunate event a portfolio company enters into liquidation, we'll provide you with the necessary documentation to claim loss relief on your tax return.
How do I claim SEIS/EIS tax relief from HMRC?
SFC prepares your paperwork and uploads all SEIS3/EIS3 certificates to your portal, along with a summary of each investment and the key HMRC codes. You or your adviser then submit the claim through your Self Assessment or a separate HMRC form. HMRC processes it and applies the relief, often allowing carry-back to the previous tax year. SFC cannot give personal tax advice, so please speak to a qualified adviser if needed.
Investor Relations
What are SFC’s annual fund schedules?
SFC runs five SEIS funds each tax year, with the final one usually closing in February. This gives investors year-round access and quick deployment. We also run two EIS funds: one closing around late October and one in February. Timings may vary based on demand.
How do I invest with SFC?
You can register your interest on our website to start the process. After that, you’ll complete an appropriateness test and self-certification. Once the 24-hour cooling-off period is over and your details are verified, you can apply for the fund online. Our team is available if you have questions.
What can I expect from an SFC portfolio?
SFC Capital backs early-stage startups across the UK’s innovation economy, from AI and DeepTech to Fintech, ClimateTech, Life Sciences, and more. Our SEIS funds typically build a diversified portfolio of around 15 early-stage companies. Our EIS fund then follows on into the strongest performers in our portfolio, creating a more concentrated group of about 10 companies with proven traction.
How does SFC's portal work?
All SFC investors get an online profile to track their SEIS/EIS portfolios, view updates, and access documents like tax certificates and reports. Advisers also receive their own profile, which can link to multiple clients, making it easy to monitor investments and download documents in one place.
Am I eligible for SEIS / EIS Investing?
To benefit from SEIS and EIS tax reliefs, you generally need to be a UK taxpayer, though other criteria may apply.Please note: These are high-risk investments and not suitable for everyone. They are usually appropriate only for Professional, High Net Worth, or Sophisticated Investors. Independent financial advice is strongly recommended.
How long does it take to deploy my investment?
It generally takes up to 6 months to fully deploy an investment across multiple portfolio companies. However, our funds will always be deployed in the current tax year.
What fees do you charge?
For investee companies, we charge a one-time fee per investment. For investors, we charge a success fee and no ongoing annual management fee. For SEIS funds only, an initial investor fee applies. Further details can be provided upon request.
When will I see a return?
The timeframe for returns can vary, but we generally aim for a 5- to 7-year investment horizon. However, it's worth noting that venture capital is a high-risk asset class and returns are not guaranteed.
What is your exit strategy?
Our preferred exit strategy is via a trade sale or public offering. We generally aim for an exit within 5 to 7 years, although this timeline can be flexible depending on the company's performance and market conditions.
Do you have an online portal so I can track my investments?
Yes, we offer a secure online portal where you can view real-time updates on your investment portfolio.
How do I get updates on the performance of my investment?
We provide bi-annual updates to our investors that include key performance indicators, financial summaries, and other relevant news. Additionally, investors get access to our portal where they can see the up-to-date performance of their investments.
Do you co-invest with other venture capital firms?
Yes, we often participate in co-investment opportunities with other venture capital firms, especially for larger funding rounds. This enables us to share risks and insights, and potentially achieve higher returns.
Do I get to choose which companies go into the funds?
Typically, the selection of companies is managed by our investment team.
Investment Criteria
What types of companies do you invest in?
We invest in early-stage companies with strong growth potential. We are sector agnostic so invest across greentech, medtech, software, consumer products and more. We look for innovative solutions, compelling market opportunities, and capable teams.
What is the average size of your investments?
Our typical investment size ranges from £100,000 to £300,000. However, the actual amount may vary based on the company's needs and potential.
Can non-UK companies apply for investment?
We do not consider non-UK companies.
Investment Process
How long does the due diligence process usually take?
The duration of our due diligence process can vary but generally takes between 1 to 4 weeks. This includes evaluating the business model, market opportunity, and financials.
Do you have a standard term sheet?
Yes, we have a standard term sheet that outlines the fundamental terms and conditions of the investment. However, terms can be negotiated to align with the unique circumstances of each deal.
Do you lead funding rounds?
Most of the times, we do lead funding rounds but can also participate as a follow-on investor depending on the situation and our investment strategy.
How many companies are in the SEIS and EIS funds on average?
On average, each of our SEIS and EIS funds consists of 20 companies. The exact number can vary based on the fund's strategy and investment opportunities available.
.png?width=2000&height=318&name=SFC%20Logo%20+%20Title%20x%20web%20(white).png)
.png?width=600&height=296&name=Young%20talent%20(1).png)
%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)
%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)
%20-%20Markel.webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Markel.webp)