Tax Relief: Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies to raise equity finance by offering a range of tax reliefs to individual investors who purchase new shares in those companies. It complements the existing Enterprise Investment Scheme (EIS) which will continue to offer tax reliefs to investors in higher-risk small companies. SEIS is intended to recognise the particular difficulties which very early-stage companies face in attracting investments, by offering tax reliefs at a higher rate than that offered by the existing EIS.
SEIS applies for shares issued on or after 6 April 2012. The rules have been designed to mirror those of EIS as it is anticipated that companies may want to go on to use EIS after an initial investment under SEIS.
Please Note: The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax relief, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.
Example of SEIS
Jenny invests £20,000 in tax year 2020-21 (6 April 2020 to 5 April 2021) in SEIS qualifying shares. The SEIS relief available is £10,000 (£20,000 at 50%). Her tax liability for the year (before SEIS relief) is £15,000 which she can reduce to £5,000 as a result of her investment.
50% Tax deductible
You may be able to claim up to 78% tax relief on your investment if the company succeeds and you pay no CGT when you sell your shares.
Crowd for Angels has a large selection of SEIS-eligible companies looking for investment. We make it simple and straightforward to invest in SEIS-eligible companies, and when you make an investment, we take care of all the paperwork to ensure you are able to claim your full reliefs. For more information on how SEIS works please read the HMRC guidance documentation.
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Please Note: The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax relief, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.