SEIS—introduction to regime and description of tax reliefs

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

  • SEIS—introduction to regime and description of tax reliefs
  • Summary of SEIS tax reliefs
  • Income tax relief
  • Operation of the relief
  • CGT disposal exemption and allowable capital losses
  • CGT re-investment relief
  • Advance assurance
  • Procedure for claiming SEIS relief
  • Information memorandum

SEIS—introduction to regime and description of tax reliefs

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?

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:

  1. the individual investors (see Practice Note: SEIS—conditions for relief: individual investor conditions)

  2. the issued shares, the funds raised and arrangements in general (see Practice Note: SEIS—conditions for relief:

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