Why this matters
If you’re building a startup in the UK, you might apply for grants, university funding, or local support schemes alongside SEIS/EIS investment.
What many founders don’t realise is that some of these grants count as “state aid” (or “subsidies” under UK law).
That matters because:
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There’s a cap on how much “state aid” your company can receive.
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Certain types of aid reduce how much you can raise under SEIS.
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You need to be able to tell HMRC and investors what you’ve already received.
In short: knowing whether your grant is De Minimis or MFA helps you avoid surprises later, especially when raising your first investment round.
The basics
Public money that helps your business - from Innovate UK, a university, or a local authority - is often treated as a subsidy.
There are different categories depending on how big the support is and who provides it.
SEIS, EIS & grants - how they interact
In plain English: Only de minimis aid reduces your SEIS allowance. MFA doesn’t.
How to check what you’ve got
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Ask your grant provider “Is this de minimis aid or MFA?”
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Get it in writing – they must tell you.
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Keep every grant letter – HMRC may ask for proof when approving SEIS.
Quick examples
Founder tips
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Keep track of all public grants (type + amount + date).
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Ask each provider if it’s de minimis or MFA.
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If planning SEIS, leave headroom below £250k.
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Store all confirmation letters for 10 years.
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When unsure, ask your accountant or lawyer.
Simply:
SEIS = de minimis aid. MFA ≠ de minimis aid.
Only de minimis grants reduce your SEIS headroom.
