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 mins to learn more.
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<img src="/images/icon-funds-what-is.svg" alt="What is an SEIS fund?" class="w-full mb-4">
<p class="text-sm font-semibold text-gray-800 uppercase tracking-wide">WHAT IS AN SEIS FUND?</p>
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<p class="text-sm font-semibold text-gray-800 uppercase tracking-wide">WHAT TAX RELIEFS CAN I EXPECT?</p>
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<p class="text-sm font-semibold text-gray-800 uppercase tracking-wide">POINTS TO CONSIDER</p>
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<img src="/images/icon-funds-alternatives.svg" alt="Alternatives to SEIS funds" class="w-full mb-4">
<p class="text-sm font-semibold text-gray-800 uppercase tracking-wide">ALTERNATIVES TO SEIS FUNDS</p>
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An SEIS fund is a managed investment vehicle that raises cash from individuals for the purpose of investing in a portfolio of SEIS-eligible ventures with the hopes of returning a profit to all those who have invested in the fund. SEIS is short for Seed Enterprise Investment Scheme, a scheme run by the HMRC that offers significant tax reliefs for those who invest in either an SEIS fund or SEIS-eligible ventures directly.
Beyond the generous tax reliefs that are offered through the Seed Enterprise Investment Scheme (outlined below), SEIS funds spread the risk of [investing in early-stage companies](/invest-in-startups) by investing in a large portfolio of these ventures. Further, as SEIS funds are managed by individuals who tend to have experience in the space, they may be able to perform a higher level of due diligence on the companies seeking investment than you might do on your own.
The main tax reliefs afforded through the SEIS are:
The SEIS is only available for companies that have been trading for less than two years, have fewer than 25 employees and have no more than £200,000 worth of assets. By their nature, these are very high-risk investments – hence the tax reliefs on offer. The following are useful points to think about when considering an investment.
SEIS funds can charge significant fees and, since they are a relatively recent creation, there is insufficient evidence to indicate what level of returns, if any, they may generate for investors.
SEIS funds are generally an illiquid investment: once you’ve invested, you will be unable to get cash out easily and are unlikely to see any form of return for at least three years (the minimum time you must keep your shares to retain the tax reliefs). Realistically, you are unlikely to see returns for five or more years.
