By Mark TurnerWe are pleased to announce that Precision Plants Ltd has received Seed Enterprise Investment Scheme (SEIS) Advance Assurance from HM Revenue & Customs (HMRC). This confirmation validates our status as a qualifying early-stage enterprise and opens substantial tax-advantaged investment opportunities for angel investors and early-stage venture capital supporting our Stackatrait™ hemp development programme.
What This Means for Investors
HMRC has formally confirmed that Precision Plants meets the eligibility criteria for SEIS. Investors can now claim up to 50% income tax relief on qualifying investments, with additional Capital Gains Tax exemptions and loss relief protection.
What Is SEIS Advance Assurance?
The Seed Enterprise Investment Scheme (SEIS) is a UK Government tax relief scheme designed to encourage investment in early-stage, high-growth companies. Advance Assurance is a voluntary application to HMRC where a company seeks formal confirmation that it qualifies for SEIS before raising investment. According to official HMRC guidance, Advance Assurance provides certainty to both companies and investors that qualifying investments will receive the promised tax benefits.
This is not a rubber-stamp process. HMRC evaluates the company's business activities, trading history, asset position, and compliance with scheme rules before granting assurance. Receiving Advance Assurance therefore represents a meaningful validation of Precision Plants' status as an innovative, qualifying early-stage enterprise in the agricultural biotechnology sector.
Tax Benefits for Investors
SEIS offers investors one of the most generous tax relief packages available in the UK, designed to offset the inherent risk of early-stage investing. The combined incentives significantly reduce the effective cost of investment and provide comprehensive downside protection.
| Tax Benefit | Details | Effective Impact |
|---|---|---|
| Income Tax Relief | 50% of investment amount, up to £250,000 per tax year | A £10,000 investment effectively costs £5,000 after tax relief |
| CGT Exemption | 100% exemption on gains from SEIS shares | All profits from share disposal are tax-free |
| Loss Relief | Losses can be offset against income or capital gains | Downside protection if the investment underperforms |
| Carry-Back Relief | Investment can be carried back to previous tax year | Enables flexible tax planning across tax years |
| CGT Reinvestment Relief | 50% CGT exemption when reinvesting gains into SEIS | Reduces CGT liability on other investments |
As detailed in the HMRC Self-Assessment Helpsheet HS393, these combined incentives mean that a higher-rate taxpayer investing £10,000 in a SEIS-qualifying company effectively risks only £2,250 after accounting for income tax relief and potential loss relief—while retaining full upside participation in company success.
How SEIS Works
The SEIS investment process follows a structured pathway designed to protect both investors and companies:
Advance Assurance
The company applies to HMRC for confirmation that it qualifies for SEIS. HMRC reviews the application and, if satisfied, grants Advance Assurance. Precision Plants has completed this step.
Investment
Investors subscribe for shares in the company. The maximum amount a company can raise under SEIS is £250,000 in total. Shares must be new, ordinary shares held for a minimum of three years.
Compliance Certificate
After investment, the company applies to HMRC for a compliance certificate (SEIS3 form), confirming the shares qualify for tax relief.
Tax Relief Claim
Investors use the compliance certificate to claim income tax relief through their Self-Assessment tax return, reducing their tax liability by up to 50% of the investment amount.
Why Precision Plants Qualifies
To qualify for SEIS, companies must meet stringent criteria set by HMRC. Precision Plants' qualification reflects our status as an early-stage, innovation-driven enterprise in agricultural biotechnology—a clearly qualifying sector under HMRC guidelines. The British Business Bank provides a comprehensive overview of SEIS eligibility requirements.
Advantages for Investors
With SEIS Advance Assurance in place, Precision Plants can now approach angel investors, early-stage venture funds, and other potential investors with confidence that their investments will qualify for substantial tax relief. This opens several strategic advantages:
Tax relief security: HMRC has confirmed that qualifying investments will receive the promised tax benefits, removing uncertainty about the tax treatment. Company validation: SEIS qualification confirms that Precision Plants meets HMRC's criteria for early-stage, innovative enterprises, providing independent validation of the company's status. Risk-adjusted returns: The combination of 50% income tax relief, capital gains exemption, and loss relief creates an exceptionally attractive risk-adjusted return profile for angel investors.
Effective Investment Cost After SEIS Relief (£10,000 Investment)
This risk-adjusted profile is particularly compelling when combined with the market opportunity in precision-bred hemp. The UK hemp industry is projected to grow 300% by 2030, and Precision Plants has secured £912,259 in DEFRA government funding to develop climate-resilient varieties—providing both market validation and non-dilutive capital alongside investor funding.
SEIS in UK Innovation Policy
SEIS is part of a broader UK Government strategy to support early-stage innovation and entrepreneurship. By providing tax incentives for angel investment, the scheme addresses a critical gap in the UK's innovation funding landscape: the "valley of death" between seed funding and venture capital where many innovative companies struggle to raise capital in the £100,000–£500,000 range.
For sectors like agricultural biotechnology—where R&D timelines are long and capital requirements are substantial—SEIS provides a critical source of early-stage capital to fund research, regulatory submissions, and initial commercialisation activities. The scheme has been instrumental in supporting thousands of UK startups since its introduction in 2012, channelling billions of pounds of private investment into innovative companies.
SEIS + Government Funding = Strong Foundation
Precision Plants' combination of SEIS qualification and DEFRA government funding creates a uniquely strong foundation for growth. Government funding provides non-dilutive capital for R&D, while SEIS enables tax-efficient private investment for commercialisation and scaling. Together, they de-risk the investment proposition and accelerate the path to market.
Next Steps for Investors
With SEIS Advance Assurance confirmed, Precision Plants is well-positioned to accelerate capital raising and fund the next phase of growth. This funding will support continued research and development of climate-resilient hemp varieties through our Stackatrait™ technology, advancement of regulatory submissions under the Precision Breeding Act, expansion of commercial partnerships, and scaling of production capabilities.
For investors seeking exposure to agricultural innovation, food security, and sustainable materials, Precision Plants represents a compelling opportunity to support transformational technology whilst benefiting from attractive tax incentives. Visit our Investors page to learn more about investment opportunities, or contact us to discuss how you can participate in the UK hemp revolution.
