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

Yes, certain family members can invest in a company under the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS) during a "friends and family" funding round. However, not all family members are eligible.

Can invest

Relatives like siblings, uncles, aunts, cousins, and in-laws can invest and claim (S)EIS relief, provided they do not have a ‘substantial interest’ to the company as defined by HMRC (for example, holding more than 30% of the company shares).

Substantial interest: A ’substantial interest‘ means controlling the company, or possessing more than 30% of the company’s share capital or more than 30% of the voting power in the company, or being entitled to more than 30% of the company’s assets in a winding-up. (This does not apply, subject to certain conditions, at any time when the only shares issued are the original subscriber shares).

Cannot invest

Spouses, civil partners, grandparents, parents and children. Also, anyone who has 30% or more shares in the company or voting control cannot invest.