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by Undo Capital
December 15, 2025
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What Is a Qualifying Investment (SEIS/EIS)?

A qualifying investment is the capital an investor puts into a company that meets HMRC’s rules for SEIS or EIS tax relief.

Qualifying Investment (SEIS/EIS) Meaning

The qualifying investment centres on ensuring that funds genuinely support the company’s growth. To define a qualifying investment in practice, the money must be used for a qualifying trade, R&D, product development or other growth activities within specific HMRC timeframes. It must be invested in newly issued, qualifying ordinary shares, and cannot be linked to loans, repayment arrangements or capital protection. A clear qualifying investment definition is essential because only compliant investments unlock SEIS/EIS tax benefits. Qualifying investment stands for genuine risk capital that helps early-stage companies scale.

Learn more about SEIS/EIS investment rules and eligibility at UndoCapital.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Participation in startups and early-stage enterprises involves significant risk. Such investments may be illiquid, may not generate dividends, may be subject to dilution, and may result in the total loss of invested capital. Any decisions or actions that may affect your business or personal interests should be taken only after seeking advice from suitably qualified professional advisors, and should form part of a balanced and diversified portfolio. This communication may contain links to third-party websites. The inclusion of such links does not imply endorsement, approval, investigation, or verification by Undo Capital. We accept no responsibility or liability for the content, accuracy, or use of information contained on any third-party websites. © 2025 Undo Capital Limited. All rights reserved. Reproduction is strictly prohibited.

Undo Capital handles everything — SEIS/EIS, investor agreements, share issue, and filings — in one simple, automated platform.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.