Qualifying companies can issue a maximum of £150,000 of SEIS eligible share in their lifetime.
Some companies offer their remaining lifetime allowance of SEIS shares on a first-come-first-served basis to investors. Investors who invest after the remaining SEIS allowance has been exhausted are offered potentially EIS eligible shares. We call this a dual SEIS and EIS raise.
Where a company is offering both SEIS and EIS eligible shares in the same round, this will be marked on that company's pitch page. If you invest in a dual raise, the email you receive after a pitch closes will set out the tax relief potentially available on your investment.
On an SEIS/EIS dual raise, payments for the SEIS eligible shares are collected and the SEIS eligible shares are issued first, before payments are collected and shares are issued for the EIS investments. Other than the different tax treatment, all investments (SEIS and EIS) are made on the same terms.
Company X has issued £50,000 of SEIS shares in the past.
It decides to do a £300,000 raise on Crowdcube. The first £50,000 invested is potentially SEIS eligible. The additional £250,000 invested is potentially EIS eligible.
After a pitch closes, all investors receive an email to review their investment, summarising the tax relief that may be available on their investments.
After the period specified in the email, the first £50,000 of investment is collected. Shares are then issued to these investors.
After shares have been issued to the SEIS investors, the remaining £250,000 of investment is collected. Shares are then issued to these investors.
If an individual investor makes 2 investments in the same pitch, one before and one after the remaining SEIS allowance has been exhausted, they will be treated as separate investments. This means that the funds for the SEIS investment will be collected before the funds for the EIS investment and the investor will receive 2 separate share certificates with 2 different issue dates.
PLEASE NOTE: The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.