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For guidance on situations where relief is withdrawn or reduced, see the Seed enterprise investment scheme ― withdrawal of relief guidance note.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

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more Read more

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more Read more