Can a Foreign Company Benefit From the SEIS?

Gary Green
Gary Green
June 27, 2017

One unusual aspect of the SEIS scheme is that a foreign company can also benefit from the scheme.

We have helped a number of foreign companies to navigate their way through raising money using the SEIS and via a similar process for the EIS. This measure helps foreign companies to raise money from the UK and gives UK taxpayers a wider range of investment options.

SEIS Company Requirements

Before considering the specific rules for a foreign company it is important to recap the some of the other requirements a company must meet in order to qualify for the SEIS.

This includes the following:

  • The company must be unquoted at the time of issue of the shares. AIM and PLUS Markets listed companies are eligible.
  • The company must have fewer than 25 full-time employees (or part-time equivalents). If the company is the parent company of a group, that figure applies to the whole group.
  • It must have no more than £200,000 in gross assets.
  • The company must not have had any investment from a Venture Capital Trust (VCT), or issued any shares in respect of which it has submitted an EIS compliance statement.
  • There is a restriction as to the amount of money it may raise under SEIS. It may not receive more than £150,000 in total under the scheme.
  • It must be performing or planning to perform a qualifying business activity.

Other SEIS Conditions

Some of these conditions apply only at the time the relevant shares are issued. Others must be met continuously, either for the whole of the period from date of incorporation to the third anniversary of the date of issue of the shares, or in some cases, from date of issue of the shares to the third anniversary of their issue. If the company ceases to meet one or more of those conditions, investors may have their tax relief withdrawn.

The conditions also state that ‘the company must be UK resident, or have a permanent establishment in the UK’.  For a foreign-based company to be considered to have a permanent establishment in the UK they must have a fixed place of business in the UK or have a UK representative who acts with satisfactory authority. The company is not required to have a UK subsidiary to use the SEIS.

Alternatively, a UK company can also have subsidiaries that are 90% or more owned by the UK company and qualify for the SEIS. This 90% subsidiary can be a foreign company. The exact requirements for a foreign company to qualify for the SEIS are complex. We would be happy to assist you in seeking advance assurance from HMRC thereby ensuring that everything is in order.

We can also assist foreign companies looking to use the EIS scheme. If you are a foreign company looking to find a different way of investment then we can help you. Get in touch with us in the office to arrange a free no obligation initial meeting.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
June 13, 2024
Credit Card Sales Campaign

Originally set up in 2014, HMRC’s Credit Card Sales Campaign was aimed at individuals and businesses...

June 6, 2024
Advice Regarding Tax Litigation

The term “litigation” is used to refer to a tax dispute’s resolution when a statutory appeal...

May 30, 2024
Let Property Campaign

HMRC has looked closely into tax compliance among UK property investors and UK landlords since 2013...

May 23, 2024
What Is A Residence & Domicile Enquiry?

Questions regarding domicile and residence have significant effects on taxes that are payable and due in...

May 16, 2024
Company Tax Investigations By HMRC

If HMRC decides to carry out an investigation into a company’s tax returns, it is important...

May 9, 2024
A Guide To The WDF (Worldwide Disclosure Facility)

More than a hundred countries around the world have made a commitment to exchange information with...

May 2, 2024
Contractual Disclosure Facility And HMRC COP9

Any tax investigation that HMRC carries out can be regarded as serious. However, if you become...

April 25, 2024
A Guide To Managed Service Companies, Personal Services Companies And IR35

Usually, people work as either a self-employed individual or an employee for a business. Nevertheless, there...

April 18, 2024
Criminal Tax Investigations

It is HMRC’s aim to ensure that taxpayers comply with the regulations and law, but HMRC...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram