The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
The Seed enterprise investment scheme (SEIS), like the Enterprise investment scheme (EIS), is designed to encourage individuals to invest money in shares issued by qualifying unquoted companies trading wholly or mainly in the UK.
The scheme became effective from 6 April 2012 and HMRC have since published some basic guidance . See the Seed enterprise investment scheme (SEIS) – introduction guidance note for an overview of the scheme.
Income tax relief is withdrawn if, within three years of subscription:
For further guidance on situations where relief is withdrawn or reduced, see the Seed enterprise investment scheme – withdrawal of relief guidance note.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 his SEIS subscription, then selling the shares shortly afterwards. If the investor disposes of his shares within three years of issue, there will be a clawback of the income tax relie
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