SEIS (Seed Enterprise Investment Scheme) is a UK government scheme designed to encourage investment in early-stage startups by offering tax relief to investors. Startups that meet certain criteria can apply for SEIS advance assurance, which confirms to HM Revenue and Customs (HMRC) that the startup qualifies for SEIS.
Here are some reasons why UK startups should consider getting SEIS advance approval:
- Attracting investors: SEIS offers attractive tax reliefs to investors, which can encourage more investors to invest in your startup. Having SEIS advance assurance can help you demonstrate to potential investors that your startup is eligible for the scheme, making your investment proposition more attractive.
- Increased credibility: SEIS advance assurance can help improve your startup’s credibility in the eyes of investors and other stakeholders. It provides independent confirmation from HMRC that your startup meets the SEIS eligibility criteria, which can help to build trust and confidence.
- Faster fundraising: Having SEIS advance assurance can speed up the fundraising process by reducing the time it takes to confirm SEIS eligibility with investors. This can help you to secure investment more quickly, allowing you to focus on growing your startup.
- Tax benefits for investors: SEIS offers a range of tax reliefs to investors, including income tax relief, capital gains tax relief, and loss relief. These tax benefits can make your startup more attractive to investors, and SEIS advance assurance can help to ensure that your investors can benefit from these reliefs.
Overall, getting SEIS advance assurance can be a valuable step for UK startups looking to attract investment and grow their business. It can provide various benefits, from attracting investors and increasing credibility to speeding up the fundraising process and offering tax benefits to investors.