Seed enterprise investment scheme ― calculating clawback of relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Seed enterprise investment scheme ― calculating clawback of relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

The seed enterprise investment scheme (SEIS), like the enterprise investment scheme (EIS), is designed to encourage individuals to invest money in shares issued by small qualifying unquoted companies.

HMRC has published some basic guidance on how SEIS works, and further details at VCM30100 onwards. See the Seed enterprise investment scheme (SEIS) ― introduction guidance note for an overview of the scheme.

Withdrawal of seed enterprise investment scheme relief

For guidance on situations where relief is withdrawn or reduced, see the Seed enterprise investment scheme ― withdrawal of relief guidance note.

There are anti-avoidance provisions to prevent an investor from obtaining income tax relief on their SEIS subscription and then selling the shares shortly afterwards. If the investor disposes of their shares within three years of issue, there will be a clawback of the income tax relief originally given. There are also clauses that treat the granting of call or put options over the shares as a disposal.

The relief that is clawed back is limited to the relief originally claimed.

The

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Foreign self-employment

Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global

Read more Read more