Which of the following is NOT a characteristic of qualifying companies under SEIS?

Qualifying companies under the Seed Enterprise Investment Scheme (SEIS) have specific criteria, and the option stating that they can raise up to £500,000 is indeed misleading in the context of SEIS itself.

SEIS allows qualifying companies to raise up to £150,000, not £500,000. The £500,000 figure typically relates to the combined limit set for other schemes, like the Enterprise Investment Scheme (EIS), which target slightly more established companies and, therefore, have higher fundraising limits. Therefore, stating that a qualifying company under SEIS can raise £500,000 does not reflect the facts of the SEIS criteria, making this option not a characteristic of qualifying companies.

In contrast, the other options highlight essential characteristics of qualifying companies for SEIS: being under 2 years old, having fewer than 25 employees, and having assets not exceeding £200,000 are all requirements that define a qualifying company under SEIS regulations, reflecting the scheme’s aim to support early-stage, small businesses.