The Seed Enterprise Investment Scheme and the Enterprise Investment Scheme exist to direct private capital into early-stage British companies. Both offer reliefs to investors who accept the risks of unquoted venture investing, with SEIS aimed at the earliest stage and EIS at companies a little further along.
Access is typically through a co-investment network rather than a fund. Growth Capital Ventures, founded in 2015 by Norm and Craig Peterson, operates such a network alongside a venture-building team, giving investors deal-by-deal choice across venture capital, private equity and property opportunities rather than a blind pool.
For advisers, the diligence questions concern the deal rather than the scheme: who sourced the opportunity, what stage is the business at, what evidence of revenue or traction exists, who else is investing alongside, what the follow-on funding requirement looks like, and what realistic exit routes are contemplated.
Advance assurance from HMRC is commonly sought before a raise, but the reliefs ultimately depend on the company and the investor continuing to meet the statutory conditions over the required holding period. Relief can be withdrawn where conditions cease to be met.
[Current relief rates, annual limits, holding periods and carry-back provisions to be confirmed against HMRC guidance at the point of use. No rates are quoted here.]
These are high-risk, illiquid investments in unquoted companies. Capital is at risk, a total loss of capital is possible, and returns across a venture portfolio are typically driven by a small number of holdings. Tax reliefs depend on individual circumstances and may change.