We use cookies
Our site relies on them (cookie policy)
SEIS for founders

SEIS/EIS Tax Relief: Save Millions in Capital Gains Tax

It's an often overlooked benefit, but founders can use SEIS in their own company to potentially save millions of pounds in Capital Gains Tax on an exit.

No credit card required.

Breaking the myth

Many founders assume SEIS isn't available to them - but it is explicitly allowed under legislation (ITA07/S257BA).

With the right structure, founders can invest in their own company and benefit from SEIS tax relief.

Key considerations

Typically requires 3+ co-founders
Easier pre-incorporation, but possible later
Not available if the company has been trading 3+ years
Not replicable under EIS

Practical scenarios for SEIS eligibility

SEIS for founders isn't always possible - for example, a sole founder owning 100% cannot qualify. However, common structures that can work include:

  • Multiple founders: e.g. 4 founders at 25% each
  • Later joiners: new founders can qualify if ≤30% ownership
  • Asymmetric setup: original founder at 100%, new SEIS founders ≤30% each
  • Early investor mix: e.g. 3 founders at 30% + 10% external investor
  • Foreign ownership: non-UK founder ownership doesn't block UK founders (≤30% each)

Why it matters

Founder SEIS requires careful setup and slightly higher upfront cost - but if your startup succeeds, it could mean millions saved in CGT on exit.

Let's consider two founders, both investing £100,000 in their business. Founder A uses SEIS, while Founder B does not. They both exit for £20m.

Founder A: Investing under SEIS

What happens at each stage when SEIS is in place.

Income Tax Relief:
£50,000 (50%) of the investment is claimed as income tax relief.
Exits for £20M:
No Capital Gains Tax payable after three years.
Founder Passes Away:
Shares held for over two years qualify for 100% IHT relief under BPR. From April 2026: 100% relief on the first £1m and 50% on the excess, creating a 20% IHT rate above £1m.
Startup Fails:
Founder A can claim 22% loss relief (depending upon the founder's tax position).

Founder B: Investing without SEIS

What happens at each stage when SEIS is not used.

Income Tax Relief:
None.
Exits for £20M:
Up to £1m gains taxed at 18% Capital Gains Tax under BADR. >£1m gains 24% Capital Gains Tax charged.
Founder Passes Away:
Shares held for over two years qualify for 100% IHT relief under BPR. From April 2026: 100% relief on the first £1m and 50% on the excess, creating a 20% IHT rate above £1m.
Startup Fails:
None.

What's included

We handle the full process to ensure your founder SEIS setup is compliant and effective:

  • End-to-end guidance and structuring support
  • Review of shareholder/subscriber structure (NewCo)
  • Full SEIS compliance management & certificates
  • Preparation and submission of Advance Assurance
  • Support setting up an arm's length funding round post-approval

Simple, transparent pricing

Founder SEIS isn't a separate purchase. It's included whenever you buy a funding round or start a subscription. No add-ons, no extras.

Full priced round
£1,450 +VAT · One-time fee
  • Founder SEIS structuring advice
  • Full SEIS compliance & certificates
  • Advance Assurance submission
  • Support through a properly priced funding round
  • Membership in the FounderCatalyst community
Get started
Launchpad Subscription
£995 +VAT / year

Or mix and match ASAs, Agile and Priced rounds, as often as you like.

  • Unlimited ASA, Agile & Priced rounds
  • £100k fundraising cap
  • SEIS/EIS advance assurance
  • SEIS/EIS compliance and certificates
  • Unlimited expert support
Compare plans
Core Subscription
£1,995 +VAT / year

Everything in Launchpad, with no fundraising cap.

  • Unlimited ASA, Agile & Priced rounds
  • No fundraising cap
  • SEIS/EIS advance assurance
  • SEIS/EIS compliance and certificates
  • Unlimited expert support
Compare plans

Founder case study

Sam Simpson

Sam Simpson

Roc Technologies Ltd

Before co-founding FounderCatalyst, Sam used SEIS to invest in his own company as a director.

  • Grew Roc Technologies from £0 to £30m revenue in 4 years
  • Successfully exited to private equity
  • SEIS structure saved millions in CGT per founder

This experience led to the creation of FounderCatalyst.

Get SEIS for investing in your own business

Ready to structure your founder investment properly? FounderCatalyst handles the complexity - so you can focus on building your company. No credit card required.

Partnered with people that push you further

Angel Groups logo Ascension logo Angel Investors Bristol logo Colorintech logo Crowdcube logo Digital Catapult logo Female Founders Rise logo Fuel Ventures logo Jumpstart logo Republic Europe logo SETsquared Partnership logo SFC Capital logo Swoop Funding logo SyndicateRoom logo