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by Undo Capital
December 15, 2025
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What are Qualifying Shares(SEIS/EIS)?

Qualifying shares are newly issued, full-risk ordinary shares that meet HMRC requirements for investors to receive SEIS or EIS tax relief.

Qualifying Shares Meaning

The qualifying shares' meaning centres on ensuring that investors receive genuine equity exposure with no special protections. To define qualifying shares in practice, they must be ordinary shares without preferential rights to dividends, redemption or capital protection, and they must be fully paid up at the time of issue. A clear qualifying shares definition is essential because only these shares allow investors to claim SEIS/EIS relief; any preferential or redeemable structure can disqualify the investment. Qualifying shares stand for unrestricted ownership aligned with real commercial risk.

Learn more about SEIS/EIS requirements and compliant share structures 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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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.