SEIS—circumstances in which relief is withdrawn or reduced

The following Tax practice note provides comprehensive and up to date legal information covering:

  • SEIS—circumstances in which relief is withdrawn or reduced
  • Withdrawal or reduction of SEIS income tax relief and CGT reinvestment relief
  • Receipt of value
  • Relief withdrawn because investor ceases to be eligible for SEIS relief
  • Relief withdrawn because shares or company cease to be eligible for SEIS relief
  • Notification requirements
  • Individual investors' notification obligations
  • Issuing company's notification requirements
  • HMRC's powers
  • Calculating the clawback of income tax relief—disposal of SEIS shares
  • More...

SEIS—circumstances in which relief is withdrawn or reduced

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

Coronavirus (COVID-19): In response to the coronavirus (COVID-19) pandemic, the government introduced a Future Fund, under which innovative companies can access government funding, subject to a commitment of equal funding from private investors in the form of a convertible loan note that can either be redeemed or converted into shares. Section 110 of Finance Act 2020 ensures that such investments do not jeopardise the Enterprise Investment Scheme or Seed Enterprise Investment Scheme reliefs on existing shareholdings. For more information, see Practice Note: Coronavirus (COVID-19)—tax implications—Future Fund: EIS and SEIS relief.

The seed enterprise investment scheme (SEIS), like the enterprise investment scheme (EIS), is designed to encourage investment in smaller, higher-risk companies by offering a range of tax reliefs to individual investors purchasing newly issued shares in those companies.

For full details of these reliefs, see Practice Note: SEIS—introduction to regime and description of tax reliefs. In summary, these reliefs include:

  1. income tax relief of

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