The Seed Enterprise Investment Scheme (SEIS) was launched by the United Kingdom government on 6 April 2012 in order to encourage

investor An investor is a person who allocates financial capital with the expectation of a future Return on capital, return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of pr ...

s to finance

startups A startup or start-up is a company or project undertaken by an Entrepreneurship, entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses tha ...

by providing

tax break Tax break also known as tax preferences, tax concession, and tax relief, are a method of reduction to the tax liability of taxpayers. Government usually applies them to stimulate the economy and increase the solvency of the population. By this f ...

s for backing projects they may otherwise view as too risky. SEIS acts as an incentive to encourage investors to invest as the tax relief can allow individual investors to reduce their effective income tax liability, for the year in which they make the investment, to zero.

Examples

Some of the funding for the establishment of the Nc’nean distillery in Scotland was from SEIS.

References

{{reflist Taxation in the United Kingdom