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by Undo Capital
December 15, 2025
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What Is Trading Requirement (SEIS/EIS)?

The trading requirement is the rule that a company must be carrying on, or preparing to carry on, a qualifying trade to be eligible for SEIS or EIS tax relief.

Trading Requirement (SEIS/EIS) Meaning

The trading requirement centres on ensuring that SEIS/EIS funds support genuine commercial activity. To define trading requirements in practice, a company must either already be trading or have clear plans and activities aimed at starting a qualifying trade, such as product development, hiring or market research. HMRC assesses whether the business intends to grow and generate revenue, excluding activities like investment management or property development. A clear trading requirement definition matters because failure to meet this rule can prevent investors from receiving SEIS/EIS relief. The trading requirement stands for real economic activity, growth intention and compliance with HMRC criteria.

Learn more about SEIS/EIS rules at UndoCapital.

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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.