The following Tax guidance note provides comprehensive and up to date legal information covering:
The seed enterprise investment scheme (SEIS) was announced at the Autumn Statement in November 2011 and took effect from 6 April 2012. SEIS was originally introduced for a limited period only but, as announced at Budget 2014, legislation was introduced by Finance Act 2014 to remove the expiry clauses for SEIS relief, making the regime permanent (beyond its original expiry date of 5 April 2017).
SEIS allows early-stage, unquoted companies (companies listed on AIM are unquoted for these purposes) that meet certain requirements to raise finance by issuing qualifying shares to qualifying investors. The SEIS regime is heavily based on the EIS regime, the key difference being the requirements are more stringent and targeted at companies in their initial start-up phase. These requirements relate to:
the individual investors (see Practice Note: SEIS—conditions for relief: individual investor conditions)
the issued shares, the funds raised and arrangements in general (see Practice Note: SEIS—conditions for relief: issued shares, the funds raised and arrangements in general), and
the issuing company (see Practice Notes: SEIS—conditions for relief: issuing company and SEIS—conditions for relief: qualifying trades)
When advising on the availability of SEIS tax relief, it is essential to note the potential for such relief to be subsequently withdrawn or restricted as a result of the actions of the individual investor or the issuing company (or its group). See
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