The Seed Enterprise Investment Scheme (SEIS) is the sister programme to EIS, created by the UK government to help very early-stage companies raise investment. It’s one of the most generous tax incentive schemes in the world, particularly suited to emerging film production companies and early-stage creative projects looking to secure their first round of private finance.

For film investors, SEIS offers a powerful combination of high tax reliefs and risk mitigation, encouraging individuals to back creative start-ups or debut productions.

‍

Key Benefits for Investors:

‍

50% Income Tax Relief:

You can claim back half of your investment against your income tax bill.

For example, if you invest £10,000 into a new film production company, you can claim £5,000 in income tax relief, making your effective investment only £5,000.

‍

Capital Gains Tax (CGT) Relief:

If you reinvest gains from other assets into a SEIS project, you can receive up to 50% CGT exemption on that amount.

‍

Tax-Free Growth:

If your investment grows in value – for instance, the film generates profits or the company appreciates – any gain is free from capital gains tax after three years.

‍

Loss Relief:

If the film doesn’t perform as expected, you can claim loss relief on the remaining balance, further reducing your downside.

‍

Example in Practice:

Let’s say you invest £20,000 in a new production company developing its first feature film.

You claim £10,000 back in income tax relief immediately.

Your net exposure is only £10,000.

If the company’s value doubles and your shares become worth £40,000, your £20,000 profit is completely tax-free.

If the project fails, and you claim loss relief on the remaining £10,000, your actual loss could be as low as £5,000 or less.

‍

Why It Matters for Film:

Film and television projects often start small – in development or early production stages – where SEIS funding is most useful. It helps producers raise initial finance to write scripts, attach talent, or complete proof-of-concept materials that make the project viable for further investment.

SEIS is typically used for:

- Development finance for feature films or documentaries

- Early-stage production companies looking to establish themselves

- Short films, pilots, or proofs of concept that pave the way for larger EIS-qualifying projects

‍

At Two Fresh Film, SEIS allows us to bring early investors into a project at its most exciting stage – when creative vision and financial potential are highest – while offering investors unmatched tax protection and long-term upside.

‍

The Enterprise Investment Scheme (EIS) is a UK government-backed initiative designed to encourage private investment into early-stage, high-risk companies, including independent film and television productions. It does this by offering a range of generous tax incentives to investors who purchase new shares in qualifying UK companies.

For film projects, EIS provides an attractive way for individuals to support creative work while reducing their financial risk. Investors can receive:

‍

30% Income Tax Relief

If you invest, for example, £10,000 into a qualifying film production company, you can claim £3,000 back against your income tax bill that year. So your effective net investment is £7,000, not £10,000.

‍

Capital Gains Tax Exemption

If the shares are held for at least three years and the project is profitable, any gains made from selling those shares are free from capital gains tax.

‍

Loss Relief

If the investment doesn’t perform as expected, you can claim loss relief against your income or capital gains. For example, if the film underperforms and your £10,000 investment returns £0, your real loss (after tax reliefs) could be as low as £4,900 depending on your tax bracket.

‍

Capital Gains Deferral Relief

You can also defer paying capital gains tax on other assets by reinvesting those gains into an EIS-qualifying film project.

‍

Example in Practice

Let’s say you invest £25,000 into a new UK film through an EIS-qualifying production company.

• You claim £7,500 (30%) back as income tax relief.

• The net cost to you is therefore £17,500.

• If the film is successful and returns £50,000 after three years, your gain of £25,000 is completely tax-free.

• If the film fails, you can claim loss relief on the remaining £17,500 — reducing your effective loss to around £10,500 or less.

‍

Why It Matters for Film

Film and TV projects are inherently high-risk but also high-reward, making them ideal for the EIS structure. Investors get the satisfaction of supporting the arts and UK creative talent, while also benefiting from robust government-approved financial protection.

Production companies often use EIS structures to finance:

• Feature films and documentaries

• Television series and co-productions

• Post-production and distribution entities
‍

At Two Fresh Film, for example, we offer EIS investment opportunities across select titles on our slate, allowing investors to participate in the financial and cultural success of independent British cinema while enjoying substantial tax advantages.

‍