The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The seed enterprise investment scheme (SEIS) is designed to encourage individuals to invest in new shares issued by qualifying unquoted companies. SEIS is specifically aimed at very small companies which have only started to carry on a qualifying trade. The scheme complements the enterprise investment scheme (EIS) as it is expected that companies may want to go on to use EIS after an initial investment under SEIS.
HMRC has issued a helpsheet HS393 and guidance at VCM30000 onwards.
See the SEIS and EIS ― overview guidance note for a comparison of the tax reliefs available under SEIS and EIS.
A subscription for eligible shares of a qualifying SEIS company is a tax efficient investment for the individual who can benefit from the following tax reliefs:
income tax relief for the investor of up to 50% of the amount invested, subject to an annual subscription limit of £100,000
gains on disposals of SEIS shares after three years may be exempt from capital gains tax (CGT)
CGT exemption allows investors disposing of any asset an exemption of up to 50% of their subscriptions in SEIS shares during the same tax year
losses on disposals of SEIS are allowable for CGT purposes
SEIS investments should qualify for IHT business property relief (BPR) after two years of ownership (see the BPR overview guidance note)
SEIS income tax relief is 50% on the lower of:
the amount subscribed for the shares
the annual limit of £100,000
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