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For guidance on situations where relief is withdrawn or reduced, see the Seed enterprise investment scheme ― withdrawal of relief guidance note.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