Seed enterprise investment scheme (SEIS) ― introduction

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The SEIS, like the enterprise investment scheme (EIS), is designed to encourage individuals to invest money in shares issued by qualifying unquoted companies, though is specifically aimed at smaller companies which have only recently begun to carry on a qualifying trade.

HMRC has published some basic guidance. Unlike the EIS, which will no longer be available for shares issued on or after 6 April 2025, there is no sunset clause for SEIS.

Tax benefits to the individual

The main benefits of the scheme are similar to those for the Enterprise investment scheme (EIS) (see SEIS and EIS ― overview guidance note). There are no particular tax reliefs available to a qualifying company that is seeking investment. The tax reliefs are given to the investor. Under SEIS, the key incentives for investors are as follows:

•
income tax relief for the investor of up to 50% of the amount invested, up to an annual subscription limit of £200,000 (£100,000 for shares issued before 6 April 2023)
•
gains on disposals of SEIS shares after three years

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Trusts and Inheritance Tax

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

��Ӱ��