Why isn’t the Government’s seriously sexy Seed Enterprise Investment Scheme (SEIS) better known throughout society, just as ISAs are? I only came across SEIS recently, and none of the professionals I’ve worked with—lawyers, accountants, IFAs—ever mentioned it to me. I bet only 1% of my readers have heard of the scheme.
Too often, professionals (like the lawyer I was) stick to safe, standard regulator-approved processes, avoiding minor risks, rather than asking the bigger question: what’s truly in my client’s best interest? SEIS is a prime example of this oversight—a brilliant HMRC scheme that could have reshaped my decisions – and perhaps yours, too – had I known about it.
This reminds me of healthcare. Why don’t doctors routinely recommend vitamin D supplements? Between October and March, in the UK, we can’t get any vitamin D from the sun—a vitamin vital for immunity. For those of us with autoimmune disorders (me), the elderly, or people who rarely get outside, we are especially at risk. Vitamin D supplementation is simple, bulletproof advice, but it’s rarely mentioned by medics because it falls outside the routine. The NHS itself advises taking vitamin D in winter months.
Imagine receiving a simple text reminder from your doctor with proactive advice to take Vitamin D, rather than a reminder to get the flu jab. There would be less need for urgent medical attention. SEIS is much the same.
The Brilliance of SEIS
SEIS helps startups raise investment while offering investors unparalleled tax benefits:
- 50% income tax relief on your investment.
- Tax-free gains if the company succeeds.
- Loss relief if it doesn’t, so you can recover 75% or more.
Like ISAs, it’s capped because it’s so advantageous, but unlike ISAs, investing in SEIS means you’re part of the journey. You can advise, connect, and help shape success.
Why I’m Frustrated
I’m frustrated that this brilliant scheme is so underused. Using SEIS could ensure that investors’ money stays in the economy, doing what banks have stopped doing: funding innovation and growth.
The scheme has been around for a decade, yet it’s rarely promoted. Why aren’t people told, “You should invest in multiple SEIS opportunities annually—not just for tax relief, but to diversify risk and support meaningful innovation”? Where are the SEIS companies in my hometown of Harrogate for me to invest in? Sign me up, I’d say.
SEIS investment is a smarter, more impactful use of money than investing in faceless mega-corporations or industries you might not ethically support. SEIS empowers you to invest in ambition, innovation, and change.
The Suffrago Opportunity
At Suffrago, we’re transforming democracy. In just four weeks, 26 MPs and staff have logged in to use our tools, giving them actionable data about their constituencies. Soon, we will be registered as an HMRC-approved SEIS company.
Sound financial advice would recommend (not just investing in Suffrago, of course!) but spreading your investments across multiple SEIS companies. Backing a portfolio of ambitious startups is a smarter, safer way to make your money work.
If SEIS had been on my radar earlier, I’d have done things very differently. Don’t make the same mistake. And take your Vitamin D – I’ve made that mistake too.
