Knowledge Base: Can my family invest under SEIS/EIS?

Yes — but not all family members are eligible to claim SEIS or EIS tax relief. During a "friends and family" funding round, certain relatives can invest and benefit from these schemes, while others cannot, based on HMRC rules.

Who CAN invest and claim SEIS/EIS relief?

The following relatives can invest and claim relief, as long as they do not have a 'substantial interest' in the company (see definition below):

• Siblings (brothers and sisters)

• Uncles and aunts

• Cousins

• In-laws (e.g. brother-in-law, mother-in-law)

• Step-parents

• Friends and other non-immediate relatives

Substantial interest

You’re considered to have a substantial interest in a company if you:

• Hold more than 30% of the company’s shares

• Control more than 30% of the voting rights

• Are entitled to more than 30% of the company’s assets in the event of winding up

This rule applies to all investors — family or not.

Note: There are exceptions when only subscriber shares have been issued, but seek professional advice in those cases.

Who CANNOT claim SEIS/EIS relief?

These close family members cannot claim SEIS/EIS relief (even if they invest), due to HMRC restrictions:

• Spouses or civil partners

• Parents and grandparents

• Children and grandchildren

• Stepchildren

• Anyone who holds a ‘substantial interest’ in the company

Note: While these individuals won’t be eligible for SEIS/EIS tax benefits, they can still invest.