Some companies are in a position to offer both SEIS and EIS tax relief. SEIS will be offered to investors on a first come first served basis. When the allowance for SEIS has been reached investors will be allocated EIS in its place. Confirmation of your tax relief allocation will be confirmed to you in your cooling off email, providing you with the opportunity to review your investment.
The status of dual raises will be shown on the pitch page, where it will show both SEIS and EIS availability for investors. Companies can have a maximum allowance of £150,000 to offer under the SEIS scheme, which can attract a large number of investors in a short amount of time. The amount of SEIS that is available to investors can be lower than £150,000 if the company has previously claimed through the tax scheme before our raise of investment.
On an SEIS/EIS dual raise, all payments are collected after the cooling off period has expired. We then release the SEIS eligible funds to the company and issue these shares before remaining funds are released and EIS shares are issued. Other than the different tax relief schemes, all investments (SEIS and EIS) are made on the same terms.
Qualifying companies can issue a maximum of £150,000 of SEIS eligible share in their lifetime.
Companies offering SEIS shares allocate the tax relief on a first-come-first-served basis to investors. Investors who invest after the remaining SEIS allowance has been exhausted are offered EIS eligible shares. We call this a dual SEIS and EIS raise.
For example:
Company X has issued £50,000 of SEIS shares in the past.
It decides to do a £300,000 raise on Crowdcube. The first £100,000 invested is potentially SEIS eligible. The additional £200,000 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.
We will then collect all payments and release the SEIS funds to the company and issue the SEIS share certificates.
After the SEIS shares have been issued, the remaining £200,000 of EIS and non tax relief 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 shares for the SEIS and EIS investment will be issued on separate days, the investor will receive 2 separate share certificates.
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.
