Here’s a Very Generous Scheme – The Seed Enterprise Investment Scheme (SEIS)
SEIS has been designed to help early stage companies raise equity finance. There is tax relief for individual investors of up to 50% of their investment in one tax year. Most of all there are many other benefits and basic qualifying criteria. Owadally and King have expertise in this area as well as EIS.
We are giving you a brief overview here. However if you need more info Get In Touch Here and we’ll give you the best possible advice about these schemes.
SEIS – Excellent Benefits
Income Tax Relief
An investor can receive up to 50% of their investment, up to £100,000 per tax year, in the form of an income tax break.
There is a ‘carry-back’ facility, which allows all or part of the cost of shares acquired in one tax year to be treated as though the shares had been acquired in the preceding tax year.
Capital Gains Tax Exemption
If you sell the shares after 3 years, any profit is free from Capital Gains Tax. If you sold an asset and reinvested all or part of the amount of the gain in shares, which also qualify for SEIS income tax relief, the amount reinvested may be partly exempted from Capital Gains Tax.
SEIS – Qualifying Criteria
Income Tax Relief
The company/group must have fewer than 25 employees The company/group must have no more than £200,000 in gross assets The company/group must not have received more than £150,000 under the scheme The business must not have been trading for more than 2 years The investment must be in ordinary shares that are not redeemable or carry any preferential rights SEIS –
Restrictions for the Investor
Investors can invest up to £100,000 per annum under SEIS.
A single investor cannot control more than 30% of the company’s shares. They must not be employed by the company. Howvere they can be a Director. Any shares invested must be held for a minimum of 3 years