Angel investment in the UK is often structured as equity (share issue) or convertible loan notes. SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) offer significant tax reliefs to qualifying investors. The agreement should cover rights attached to shares, information rights, and exit mechanisms.

• SEIS: 50% income tax relief on investments up to £200,000 per investor
• EIS: 30% income tax relief on investments up to £1,000,000 per investor
• New shares must be issued within 4 months of agreement for SEIS/EIS compliance
• Consider drag-along/tag-along rights and pre-emption rights
• Investor agreements should not constitute "control" under SEIS/EIS rules

Legal reference: Companies Act 2006; Income Tax Act 2007 (EIS/SEIS); FCA regulations (financial promotion)