What is SEIS (Seed Enterprise Investment Scheme)?
The Seed Enterprise Investment Scheme (SEIS) is an extremely generous incentive set up to encourage individuals to invest in businesses that are just getting started.
You can get some of the best tax reliefs in the UK:
1. Tax reliefs when you invest
- 50% Income Tax Relief: for £10,000 investment, your income tax is reduced by £5,000 for that year. You can also “Carry Back” this relief to apply some or all of it to the previous tax year.
- 100% Capital Gains Tax Relief: if you had previous capital gains and used them to invest into SEIS company, then those gains are exempt from capital gains tax. This is how much you’d normally pay.
2. Tax reliefs when you exit
- 100% Capital Gains Tax Exemption: any gains you make from selling your SEIS shares are fully exempt from CGT. You must hold the shares for at least 3 years and have claimed the income tax relief above.
- 100% Loss Relief: any losses on the shares can be fully deducted against your Income or Capital Gains Tax.
3. Additional reliefs
- 100% Inheritance Relief: the shares get full IHT relief as long as the investor’s passing away is at least 2 years after investment. Here is how much the IHT would normally be.
How to invest in SEIS companies
The SEIS is a great scheme to take advantage of (as is EIS, which focuses on slightly less risky businesses).
You can easily invest in SEIS eligible companies through:
The maximum amount you can invest is £100,000.
Can TaxScouts help with SEIS tax reliefs?
We can tell you exactly which documents we need and file your Self Assessment tax for you so you can actually benefit from all the SEIS tax reliefs.
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