Seed enterprise investment scheme ― tax relief

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The seed enterprise investment scheme (SEIS) is designed to encourage individuals to invest in new shares issued by qualifying unquoted companies. SEIS is specifically aimed at very small companies which have only started to carry on a qualifying trade. The scheme complements the enterprise investment scheme (EIS) as it is expected that companies may want to go on to use EIS after an initial investment under SEIS.

HMRC has issued a helpsheet HS393 and guidance at VCM30000 onwards.

See the SEIS and EIS ― overview guidance note for a comparison of the tax reliefs available under SEIS and EIS.

SEIS tax benefits

A subscription for eligible shares of a qualifying SEIS company is a tax efficient investment for the individual who can benefit from the following tax reliefs:

•
income tax relief for the investor of up to 50% of the amount invested, subject 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 may be exempt from capital

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

Personal Tax

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

��Ӱ��